Inflation Calculator
Shows how inflation changes prices and purchasing power.
Result
- Future cost of the same basket
- S$1,280.08
- Buying power of today's amount
- S$781.20
How to use the inflation calculator
- Enter the amount today (S$).
- Enter the inflation rate (% a year).
- Enter the years.
- The results update as you type, or press Calculate.
- Read the future cost of the same basket first, then the supporting figures below it.
Formula
Future cost = amount × (1 + i)^t.
Worked example
For example, with these inputs:
- Amount today (S$): 1,000
- Inflation rate (% a year): 2.5
- Years: 10
the calculator returns:
- Future cost of the same basket: S$1,280.08
- Buying power of today's amount: S$781.20
Background
Inflation erodes buying power, so a savings goal set in today's dollars needs to be adjusted upwards for the years it will take to reach it. Singapore's core inflation has varied widely over the past decade, so it is worth testing a range of rates.
Calculators make it easy to compare scenarios side by side: a shorter tenure versus a lower instalment, a higher deposit versus more cash in hand, or paying down debt versus investing. Seeing the total cost, not just the monthly figure, usually makes the better choice obvious.
Frequently asked questions
How does the inflation calculator work?
It applies this formula: Future cost = amount × (1 + i)^t.
Is this financial advice?
No. It is a calculation tool. For decisions about loans or investments, compare official offer documents and consider speaking to a licensed adviser.