Inflation & Indexation Calculator
What is your money worth in the future or in the past
Methodology
- Equivalent = amount × (1 + inflation/100)^years (compound inflation)
- Indicative — category inflation may differ (NSI)
Example
10 000 BGN · 5% · 5 years → ≈12 763 BGN.
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What does the inflation and indexation calculator calculate?
The calculator applies compound annual inflation to the amount you enter (BGN): equivalent = amount × (1 + inflation/100)^years. The result shows the equivalent money amount after average annual inflation over the chosen period and direction (from today toward the future, or from the past toward today).
Distinguish two figures: the percentage price increase(how much more expensive the basket is versus the starting amount) and the percentage loss of purchasing power of a fixed nominal amount (how much less the same money buys at the new prices). These are not the same number.
How to use the inflation and indexation calculator?
The tool fields are:
- Starting amount (BGN): the amount you index.
- Average annual inflation (%): average yearly rate (illustrative; real rates differ by category).
- Period (years): whole years — there are no separate start/end year fields.
- Direction: “today → future” or “past → today” — changes the result label; the equivalent uses the same compound formula.
- Calculate: see the leading equivalent and the overall percent change versus the starting amount.
Example with specific numbers
Example: 10,000 BGN · 5% average annual inflation · 5 years · direction “toward the future”
- Starting amount: 10,000.00 BGN
- Inflation: 5% per year
- Period: 5 years
- Equivalent value: 12,762.82 BGN (= 10,000 × 1.05^5)
- Price increase vs starting amount: +27.63% ((12,762.82 − 10,000) / 10,000)
- Purchasing-power loss of fixed 10,000 BGN vs new prices: ≈21.65% (1 − 10,000 / 12,762.82)
Rounding is to the nearest stotinka. The calculator does not auto-load current NSI rates — you enter the average percentage yourself.
Sources and notes
Formula: equivalent = amount × (1 + inflation/100)^years. Official Bulgarian statistics are published by the National Statistical Institute (NSI); category inflation can differ. This tool is an arithmetic orientation and does not replace contractual indexation or financial advice.
Financial results are estimates from standard formulas. Not a bank offer and not a substitute for a contract or advice.
Sources:
- BNB – Bulgarian National Bank
- ECB – European Central Bank
- Page formulas – Annuity, interest, amortization, etc.
Frequently Asked Questions
What is inflation?
Inflation is the general rise in prices of goods and services over time, which reduces the purchasing power of money.
How does the inflation calculator work?
You enter an amount in BGN, average annual inflation in %, and a period in years, choose a direction, and get an equivalent value using amount × (1 + r/100)^n, plus the percent change versus the starting amount.
Why are price increase and purchasing-power loss different percentages?
The increase compares the new equivalent with the start (e.g. +27.63%). Purchasing-power loss of the same nominal money is 1 − start/equivalent (e.g. ≈21.65%).
What can I use the calculator for?
As a guide when indexing salaries, rents, and contracts, and to illustrate how inflation changes the equivalent value of savings. It does not replace official rates or legal advice.
How do I calculate salary indexation?
Enter the current salary as the starting amount, the average annual %, and the number of years in the period, choose direction “toward the future”, and review the equivalent. There are no start/end calendar year fields.