Inflation Calculator
See how inflation affects the value of money. Enter an amount, an inflation rate and a number of years to calculate its future value, or its value today.
How it works
Money loses purchasing power as prices rise. The future value multiplies by (1 + r)ⁿ; the value today divides by the same factor.
Future = amount × (1 + r)ⁿ · Present = amount ÷ (1 + r)ⁿWorked examples
What 100,000 TZS becomes at 5% inflation for 10 years
Grace left 100,000 TZS in a drawer for ten years instead of putting it to work.
About 162,889 TZS in future money - the same purchasing power, at a higher price level. Looked at the other way, 100,000 TZS in ten years' time buys what about 61,391 TZS buys today.
The same amount over 20 years
Grace's same 100,000 TZS over twice the period, where the loss more than doubles.
At 5% a year, 100,000 TZS becomes about 265,330: doubling the period more than doubles the effect, because inflation compounds.
The first year of a 5% rate on 100,000
Grace checking what one year at the assumed rate does before looking at longer periods.
One year at 5% turns 100,000 into 105,000, and 100,000 received a year from now buys what about 95,238 buys today. A single year is easy to absorb, which is why the loss is usually described over ten or twenty years instead.
What this assumes, and where it does not apply
What it assumes
- A constant annual inflation rate is applied, compounding once a year.
- The same basket of goods is assumed throughout, which is what an index measures.
- The amount is assumed to stay in cash and earn nothing, so the change in purchasing power is measured before any interest or investment return.
Where the result does not apply
- Tanzanian inflation is published as an index that changes monthly; a single constant rate is a simplification of it.
- Prices rise at different rates for different goods, so a household that spends more on food or fuel than the index basket will feel a different rate.
- Does not model interest earned on the money over the same period.
- It does not apply to a price that is fixed by contract or by law, such as a rent agreed for several years or a regulated tariff, since those do not move with the general index.
Frequently asked questions
What is inflation?
Inflation is the rate at which the general level of prices rises, reducing the purchasing power of money.
How do I calculate future value?
Multiply the amount by (1 + inflation rate) raised to the number of years.
What is a typical inflation rate?
It varies by country and year; enter your best estimate for planning.
What is the difference between inflation and the cost of living?
Inflation is the change in the general price level measured from a basket of goods. The cost of living is what a particular household spends, which can rise faster or slower than the index if its own basket is weighted differently.
Results are estimates provided for information only and do not constitute financial, legal or tax advice. Consult a qualified professional before making financial decisions.
Delta Tech Solutions prepared this page. No external tax, accounting or legal professional reviewed it — the figures were checked against the sources listed above, and you should confirm anything you rely on with the authority that sets it.
Maintained by David M at Delta Tech Solutions · Figures last checked 10 October 2026 · Next check due 10 April 2027
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