Inflation Calculator
Estimate how the value of your money changes over time. Enter your starting amount, inflation rate, and number of years to see the impact on purchasing power.
Simulator Parameters
51.7% Devalued
Your money loses NGN 51,747.38 of buying power. Real value drops to NGN 48,252.62.
Real Cash Purchasing Value
If you hold **NGN 100,000.00** cash in a drawer, its actual buying power will diminish as price inflation compounds.
Real Value in 5 Yrs
NGN 48,252.62
Future Cost of Goods Basket
To buy the exact same basket of household goods that costs **NGN 100,000.00** today, prices will increase.
Future Cost in 5 Yrs
NGN 207,242.63
What is Inflation & Deflation?
**Inflation** is the rate at which the general level of prices for goods and services rises, resulting in a continuous depreciation of money. Over time, each unit of currency buys fewer physical goods. **Deflation** (modeled by inputs below 0%) occurs when prices drop, increasing money value, but often signals economic contraction.
How is Inflation Calculated?
Governments index prices via the Consumer Price Index (CPI), which tracks a representative basket of household goods. The annual inflation formula compounds annually: