Home
Calculators
Inflation Calculator

INFLATION CALCULATOR

Calculate Amount required in Future

Amount Today (AED):

Inflation Rate (%):

Number of Years:

Using this calculator you can predict how much amount you need to save now in order to live a financially stress-free life.

For example, at present, if you need some AED 75000 per year to live a comfortable life, then at an inflation rate of 2%, in the next 20 years, you need AED 111446 to live the comforts you are experiencing now.

Calculate Future Value of the Amount

Amount Today (AED):

Inflation Rate (%):

Number of Years:

Using this calculator, you can predict what will be the value of your current money in the future.

For example, if you have some AED 50000 saved for the expenses post-retirement, if the inflation rate is 2% then in the next 20 years it would be equivalent to AED 33380 in today’s amount. Which is less than your required expenses.

What is Inflation?

Inflation is an increase in the price of selected goods over a period of time. This will make one unit of currency buy a product or service for a lesser price than what it did in the previous years. So this reduces the value of one unit of currency. There can be many reasons for inflation. Usually, the central bank of that particular nation makes sure that the economy of the region runs smoothly and the inflation is in the acceptable limits.sss

What causes inflation?

There are two main factors that cause inflation. One is the demand-pull and the other is the cost-push. When there is a good demand for a particular product, it makes manufacturers increase the price of the products. This causes inflation. And the other factor is the cost-push, if there is an increase in the consumer products and services, it drives up the prices of the end product automatically.

United Arab Emirates Inflation Rate

For the past three decades, i.e. 1990-2019, the inflation rate in the UAE had an average of 2.12%. The highest rate was recorded in December 2008 which was 12.30% and the lowest rate in February 2019 it was -2.50%. In the year 2018, the inflation rate was around 3.53% wherein 2017 it was recorded at 1.97%. In 2019, there was a drop which caused deflation. A negative inflation rate i.e. if the inflation rate falls below 0% then it causes deflation.

How to Beat Inflation?

As said earlier, inflation is nothing but an increase in the price of the commodities. When there is a rise in the prices of the products and services, it can get difficult for an individual to bear the increased costs. To overcome the sudden increase in the prices there is proper financial planning required.

Investing in mutual funds
Investing in bonds or fixed income certificates
Investment on commodities
Getting loans on lower interest rates

How to use the inflation calculator?

The inflation calculator works in a very simple way.

Enter the current price of a product
Give the inflation rate
Give the number of years i.e. the year you want to find out the product price

Inflation Rate - Inflation rate can be forecasted by taking several factors into consideration and forecasting the right value is not possible. No one can get an accurate prediction of inflation. You can predict is the approximate value by taking 2-3 decades inflation rate and predict a rough value. This helps in preparing yourself financially for inflation.