# Inflation calculator

The Invezz inflation calculator lets you track how prices have climbed throughout history as economies have grown. Read on to see how our inflation calculator works and why it can be a useful tool.

## How to use our inflation calculator

To use our inflation calculator, follow these steps:

- Enter in the amount of money you want to track.
- Enter in the starting year for tracking the value of that amount of money.
- Enter in the final year you want to track.
- Click calculate.

## How the inflation calculator works

The inflation calculator lets you see how prices have changed from one particular year to another one later in time. It does so by showing you how much a certain amount of money is worth in the initial year you’re looking at, and how much it’s worth in the end year you’re looking at.

## Why should I use it?

You should use our inflation calculator because you can gain great insight into how prices have changed over time, and how that price inflation has influenced all kinds of consumer behaviour.

By using the calculator, you can work out figures like average annual inflation over a certain number of years, as well as total inflation over a certain number of years (both expressed as percentages). For instance, £10 that you held in 2009 grew to become worth £13.51 in 2019. That works out to a total inflation rate of 35.1% and an annual inflation rate of 3.1%.

## What is inflation?

Inflation is an increase in prices over a period of time. Because inflation tends to occur organically over time (sustained price deflation is very rare), the value of money also diminishes over time. That’s why many employers offer small annual raises to account for inflation, and the cost of living going up from one year to the next.