More in Long Horizon
What this calculator does
This calculator shows the silent loss of holding cash while inflation rises. It helps you decide how much to keep in savings versus invest.
The math
Future value = cash × (1 − inflation rate)^years. Lost purchasing power = cash − future value.
Worked example
$20,000 in cash at 3% annual inflation loses about $5,000 in purchasing power over 10 years.
Why this matters
Small decisions compound over decades. This calculator shows the long-term price of waiting or choosing the wrong path.
Methodology and transparency
This page publishes the exact formula used to compute the result, so you can verify it in a spreadsheet or check the assumptions against your own situation. The worked example uses the tool default inputs; change any number and the result updates live in your browser. No data is sent or stored.
Common questions
Is cash bad?
Not for emergencies. But holding too much cash long-term guarantees a loss of purchasing power.
How do I protect against inflation?
Invest in assets that historically outpace inflation, like stocks, real estate, or I bonds.
What inflation rate should I use?
Use the current CPI or your personal inflation rate. Historical averages are around 2–3% per year.