Inflation Impact Calculator
See how inflation erodes your purchasing power over time and develop protection strategies.
Inflation Impact Calculator
This calculator is for informational purposes only. Results are estimates and may differ from actual values.
Inflation and Purchasing Power
What Is Inflation?
Inflation is the continuous increase in the general price level. Even if the amount of your money stays the same, you can buy fewer goods and services due to inflation.
How Can I Protect Against Inflation?
- Prefer investment instruments that provide returns above inflation.
- Use inflation-indexed bonds and deposit accounts.
- Invest in real assets like real estate and commodities.
- Diversify your portfolio with foreign currency and gold.
- Direct your money to investments rather than holding cash.
What Is Real Return?
Real return = Nominal return - Inflation. If your investment earned 30% but inflation was 25%, your real return is only 5%. True wealth building is measured by real return.
Info
Inflation reduces the purchasing power of your money. With 20% annual inflation, products you buy for 100,000 TL today will cost about 249,000 TL in 5 years. If your money stays the same, you will have lost about 60% in real terms.
Invest your money in instruments that provide returns above inflation. Stocks, gold, foreign currency, and real estate can protect against inflation long-term. Cash and demand deposits are the asset class that loses the most value.
Nominal return can be misleading. Even if your investment gains 40%, if inflation is 35%, your real return is only 5%. Always evaluate financial decisions based on real return.
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