Inflation Calculator 2026
Calculate purchasing power loss and compare price development – using German inflation data since 1970
- Updated
- Basis
- Consumer price index (Destatis)
What would you like to calculate?
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ECB target: 2% per year
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Purchasing power in 10 years
€820.35
€820.35At 2% inflation, €1,000.00 will only be worth €820.35 in 10 years – 18% less purchasing power.
- 2036Purchasing power €820.35
- 2036Purchasing power €820.35
- Starting amount
- €1,000.00
- Loss of value
- − €179.65 (18%)
- Purchasing power afterwards
- €820.35
- Average inflation per year
- 2%
- Inflation over 10 years
- 22%
- Price index (start = 100)
- 122
- Purchasing power index (start = 100)
- 82
What you can do
At 2% inflation, purchasing power halves after about 36 years.
How this was calculated
Purchasing power = amount ÷ (1 + inflation)^years.
At 2% inflation, money loses about half its purchasing power in 35 years. At 7%, it only takes 10 years!
Historical data: German Federal Statistical Office (consumer price index). The current year only counts the months already published. Your own assumptions for the future are not a forecast.
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What is inflation?
Our inflation calculator helps you understand the effect of inflation on your money. Calculate how much your savings will be worth in the future, or compare historical prices.
Inflation describes the ongoing rise in the general price level. When prices rise, the purchasing power of money falls – you can afford less for the same amount of money.
Key terms
- Purchasing power
- What you can buy for a given amount of money
- Inflation rate
- Percentage price increase compared to the previous year
- Price index
- A measure of the price level (e.g. CPI)
The rule of 70
With the rule of 70, you can quickly estimate how long it takes for purchasing power to halve or a value to double:
Examples
- 2% inflation
- Purchasing power halves in ~35 years
- 5% inflation
- Purchasing power halves in ~14 years
- 7% inflation
- Purchasing power halves in ~10 years
- Years until halving
- 70 / inflation rate
Inflation in Germany
Inflation in Germany has developed very differently over the past decades. Here is an overview of average inflation across various periods:
Purchasing power examples
- 1970: 100 DM
- buys goods worth approx. €225 today
- 1990: 100 DM
- buys goods worth approx. €105 today
- 2000: €100
- has only approx. €60 of purchasing power left today
- 2010: €100
- has only approx. €70 of purchasing power left today
- 1970-1980 (oil crises)
- ~4.9%
- 1980-1990 (stabilization)
- ~2.9%
- 1990-2000 (reunification)
- ~2.4%
- 2000-2010 (euro introduction)
- ~1.5%
- 2010-2020 (low inflation)
- ~1.3%
- 2020-2024 (Covid, energy)
- ~3.9%
ECB inflation target: 2%
The European Central Bank (ECB) aims for an inflation rate of 2%. This target is considered ideal for a stable economy:
Why exactly 2%?
- Deflation protectionToo low inflation (deflation) can dampen consumption and investment
- StabilityToo high inflation devalues savings and destabilizes the economy
- Safety buffer2% provides a buffer against deflation while keeping purchasing power loss moderate
Protecting yourself against inflation
There are several strategies to protect your wealth against inflation:
Inflation protection strategies
- Stocks & ETFsHistorically higher returns than inflation, long-term value growth
- Real estateTangible assets that can rise with inflation; rental income adjusts over time
- Inflation-linked bondsYield automatically adjusts to inflation, a reliable inflation hedge
- Gold & commoditiesTraditional inflation hedge, tangible assets with limited supply
- Salary negotiationsDemand regular pay raises to offset purchasing power loss
Application examples
What you can use the inflation calculator for
- Retirement planning
- How much will my €500,000 still be worth in 30 years?
- Buying property
- What did my house cost 20 years ago, adjusted for inflation?
- Salary negotiation
- How much of a raise do I need to offset inflation?
- Contracts
- Understand and calculate price adjustment clauses
Frequently asked questions
Everything important about inflation at a glance
How do I calculate purchasing power loss due to inflation?
Purchasing power loss = amount × (1 − (1 / (1 + inflation rate)^years)). Simpler: our inflation calculator shows you what €100 today will still be worth after X years. At 3% inflation, €10,000 in savings lose about €2,600 in real value over 10 years.
What is inflation and how is it measured?
Inflation describes the ongoing rise in the general price level. It is measured using the Consumer Price Index (CPI), published monthly by the German Federal Statistical Office (Destatis). The inflation rate expresses the percentage price increase compared to the same month of the previous year.
How high was inflation in Germany in 2024?
The average annual inflation rate in Germany in 2024 was around 2.2% (after the peaks of 6.9% in 2022 and 5.9% in 2023). Our calculator uses historical German inflation data since 1970 for precise purchasing power comparisons.
How does the rule of 70 work?
The rule of 70 allows a quick estimate of how long it takes for purchasing power to halve: years until halving = 70 / inflation rate. At 2% inflation, it takes about 35 years; at 7% inflation, only about 10 years.
Why does the ECB target 2% inflation?
The European Central Bank aims for an inflation rate of 2% because this is considered ideal for a stable economy. Too low inflation (deflation) can dampen consumption and investment, while too high inflation devalues savings. 2% provides a buffer against deflation while keeping purchasing power loss moderate.
How do I protect my wealth against inflation?
There are various strategies: stocks and ETFs have historically offered higher returns than inflation. Real estate as a tangible asset often rises with inflation. Inflation-linked bonds automatically adjust their yield. Gold and commodities serve as a traditional inflation hedge. Important: money in a checking account loses real value through inflation.
What is the difference between inflation and my personal cost-of-living increase?
The official inflation rate is based on a representative basket of goods. Your personal cost-of-living increase can differ significantly – if you use a lot of energy or buy groceries frequently, you feel price increases in those areas more strongly. The inflation calculator lets you enter your own rate for individual scenarios.