Imagine this! You are at a car dealership. You are finally going to buy the car of your dreams you saved every penny for. 

But when you enter the store, you realize that the price has jumped up. That, my friend, is inflation in action. It's like the sneaky force that hikes up the prices for the stuff we buy daily, making money feel a little lighter in our pockets.

Now, why should you care about inflation, especially when you're thinking about growing your money? It's simple. When planning to invest, you want your money to do some heavy lifting, right? 

So, it needs to outpace inflation to really bring in the gains. In other words, beating inflation is your ticket to ensure your investments are truly working in your favor.

Now, since you have to take inflation into account, you must know how to calculate its effects on your investments. This is where the inflation calculator comes into play.

What is Inflation?

An inflation calculator is a nifty tool that takes away the pain of manual calculations and determines the impact of inflation on your purchasing capacity over time. It estimates your money's worth after a given period.

Let’s understand this with an example!

Assume you've got a shopping list with a few items: a loaf of bread, a box of cereal, a dozen eggs, and some milk. Today, you can get it all for AED 100. Fast forward a year, and the price of the same things will rise to AED 107 if we consider the rate of inflation to be 7%.

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What is an Inflation calculator?

An inflation calculator calculates the effect of inflation on the purchasing capacity and power of an individual. Primarily, it estimates the value of a certain amount of money after a given period.

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What are the advantages of using an Inflation Calculator?

While it is best to live in the present, keeping an eye on the future is the smart thing to do. With an inflation calculator, you can always plan ahead. Here’s how the tool benefits you:

• Understanding price-change: Stay on top of the prices of consumer goods and make smarter purchase decisions.
• The real return on investment: Determining the real return on investment through an inflation calculator to understand the real-time value of an investment in the long run.
• Stay ahead of the curve: Determine the tentative value of money in the future and invest accordingly to never fall short. 
• Save time: No need for manual calculations, saving time and effort

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How to use an Inflation Calculator

Using our inflation calculations is very simple. All you have to do is put in the details. The calculator will reflect all the details you need. 

Having difficulty filling in the details? We’ve got your back!

‍How to fill in the primary details:

• Current Cost: Current cost stands for your present-day expenses. Put in the total amount of your current expenses.
• Annual inflation: This is the rate of increase in the price of goods. Enter the rate of inflation.
• Time Period: As simple as it sounds, it is the time period for which you are calculating the inflation. Enter the time of growth.

That’s all! Easily calculate the inflation for the upcoming years to keep up with your finances.

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