Goal Inflation Calculator UK
See the future cost of a goal after inflation, so you can plan how much to save.
How it works
Compound interest earns returns on both your original money and the returns already added. Adding a regular monthly contribution accelerates growth further over time.
A = P(1 + r/n)^(nt) + contributions compounded monthly- Longer time horizons benefit most from compounding
- More frequent compounding gives slightly higher growth
- The donut shows how much of your final balance is interest vs money you put in.
Frequently asked questions
How does inflation affect a savings goal?
It raises the future cost, so the amount you actually need is higher than today’s price. Saving toward the present figure leaves a shortfall.
How do I calculate the future cost of a goal?
Multiply the present cost by (1 + inflation rate) raised to the number of years. A £30,000 goal at 3% for 10 years becomes about £40,317.
What inflation rate should I use?
The Bank of England targets 2%, but real rates vary and some costs rise faster, so choose a rate suited to your specific goal.
Why does my goal amount need adjusting?
Because money loses purchasing power over time, so a fixed target understates what you will actually need later.
How do I save enough for an inflated goal?
Work out the future target, then the monthly amount needed — ideally invested where returns can outpace inflation, such as an ISA.
Does a small change in the rate matter?
Over many years, yes. Because the effect compounds, even a one-point change in the assumed rate moves the target noticeably.
Why a future goal costs more
Inflation steadily raises prices, so a goal that costs a certain amount today will cost more by the time you reach it. This calculator projects the future price of a goal — a car, a wedding, a deposit — so you save against the right target, not today’s understated figure.
The formula
Future cost = present cost × (1 + inflation rate)^years. For a £30,000 goal in 10 years with 3% average inflation: 30,000 × 1.03^10 ≈ £40,317. Planning around £30,000 would leave a shortfall.
Choosing an inflation rate
The Bank of England targets 2% CPI inflation, though actual rates vary and some costs (like housing or education) can rise faster. Pick a rate that reflects your particular goal and revisit it as conditions change.
Once you know the inflated target, work out the monthly saving needed to reach it, ideally in something that grows faster than inflation — a Stocks & Shares ISA, for example. Aiming only at today’s price is a common reason goals fall short.
Results are estimates for general guidance in United Kingdom and may not reflect the latest local rates, fees or rules. Check official sources before making decisions.