
Inflation-Adjusted Savings Goal Calculator
What is Inflation and Why Does it Matter?
Inflation is the rate at which the general level of prices for goods and services is rising, and consequently, the purchasing power of currency is falling. In simpler terms, it means your money buys less in the future than it does today.
For your savings goal, inflation is crucial because a fixed amount of money today will not have the same value in the future. To achieve a real savings goal (i.e., maintain the same purchasing power), you need to save more than the nominal amount due to the eroding effect of inflation.