Savings vs inflation: the real value of your money
Compare the balance shown by your bank with its real value after inflation. Capital, monthly contribution, account rate, taxation and duration: see what your savings will really be worth.
Enter your savings
Auto-savedThis is an estimate. Interest rates, inflation and taxation may change.
Final value breakdown
What your final balance is worth in today's euros.
The share of value absorbed by rising prices.
Year-by-year evolution
Cross-analysis of erosion over the years. Years 5, 10, 20 and 30 are highlighted.
| Year | Savings added | Interest for the year | Bank balance | Real value |
|---|---|---|---|---|
Good to know :
This answer helps you understand a topic or make an estimate, but it is not a substitute for professional advice. For any important decision regarding your health, finances, rights, safety or administrative procedures, please consult an official source or a qualified specialist.
Go deeper
Why your savings account quietly makes you lose money
When you put money into a regulated or standard savings account, you assume it's fine: your money is safe and earns interest. That's true on paper. If you have €1,000, you'll have €1,030 the next year at a 3% rate. You haven't literally lost money.
But there's a catch: rising prices, inflation. If the price of food, cinema, clothes and energy goes up 4% that same year, your purchasing power drops. What you bought for €1,000 now costs €1,040. Since you only have €1,030 in your account, you are in reality €10 poorer.
Displayed balance
The amount your bank shows: capital, contributions and interest accrued over the fortnights.
Real value
That same balance expressed in today's euros, after subtracting cumulative inflation.
The ghost tax
The gap between the two: the share of purchasing power eaten away by rising prices.
It's like an invisible tax
If your account earns less than inflation, your money loses purchasing power. That's why you should always compare your account's rate with the current inflation rate.
How is this calculated?
Just as interest compounds (interest earns interest), inflation works the other way around. Our tool subtracts cumulative, compounded inflation to tell you what your future euros will be worth in today's economy. The account interest is computed using the French fortnight rule: a deposit made at the start of a month only starts earning interest on the following fortnight.
How to avoid losing money?
- The LEP (Popular Savings Account): if you have modest income or you're a student, it's the best account because its rate usually beats inflation.
- Diversification: keep an emergency buffer on your savings account, but invest the rest long-term (stocks, PEA) to seek better returns.
FAQ
What is the 30% "flat tax"?
It is the tax applied to interest from non-regulated bank accounts. On €100 of interest earned, the state takes €30 for taxes. The Livret A, LDDS and LEP are not subject to it (they are tax-exempt).
Why aren't monthly contributions affected the same way?
Because the money you deposit in the very first month is exposed to inflation for the whole year, whereas money deposited in the 11th month only faces one month of inflation that year. Our tool computes this precisely, month by month.
Can the money in my savings account disappear?
No, the amount shown in your bank account will never go down. It is simply its real purchasing power that decreases: you will be able to buy fewer things with the same sum in a few years.
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