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Inflation Calculator | UK
Inflation Calculator is designed to help you estimate borrowing costs, compare repayment scenarios, and sense-check property finance decisions. It works best when you want a fast, comparable estimate before you speak to a lender, provider, adviser, employer, or supplier. Use it as a planning tool rather than a final quote. This version is framed for United Kingdom users where regional assumptions matter, so you can test a few scenarios and see how changes in the main inputs affect the outcome.
Interpretation
What your result means
Use the notes below to understand the main figures in your result and when this calculator is most useful.
When to use this calculator
- Before comparing lenders, brokers, or repayment options.
- When you want to test how a different deposit, rate, or term changes affordability.
- When you need a quick estimate before using a formal quote or agreement in principle.
Result
Use this metric to compare scenarios side by side and understand how the key drivers affect the final outcome.
Next steps
What to do next
Continue with the most relevant next step based on your result.
Example
A realistic UK planning example
A realistic example to help you understand how the numbers fit together.
Starting Amount (£)
10000
Annual Inflation Rate (%)
5%
Years
25 years
After entering these figures, focus on result first and then rerun the tool with a more cautious assumption.
Avoid mistakes
Common mistakes
A few things that often lead to misleading or incomplete results.
FAQ
Frequently asked questions
Helpful answers to common questions about this calculator.
What is inflation and how does it affect my money?
Inflation is the rate at which prices rise over time, reducing the purchasing power of money. If inflation is 3% per year, £100 today will only buy £97 worth of goods next year in real terms.
What is the current UK inflation rate?
UK inflation is measured by the Consumer Prices Index (CPI), published monthly by the Office for National Statistics. Check the ONS website or Bank of England for the latest figures.
How does inflation affect my savings?
If your savings interest rate is lower than inflation, your money loses purchasing power over time. To beat inflation, consider investments or savings accounts with rates above the current CPI figure.
What is the difference between CPI and RPI?
CPI (Consumer Prices Index) is the UK government's preferred inflation measure. RPI (Retail Prices Index) tends to be higher as it includes housing costs like mortgage interest. RPI is still used for some contracts and index-linked gilts.
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