Inflation Calculator Philippines
See what your pesos will be worth in the future, how much purchasing power inflation takes away, and whether your savings rate actually beats Philippine inflation.
Last updated: 14 September 2026 · Presets based on long-run PSA inflation averages and the BSP 2–4% target band.
Peso Purchasing Power Calculator
Compounded at one constant average rate.
0.25% for big-bank savings, about 4% for digital banks, about 6.75% for MP2.
How the inflation calculator works
Inflation is the rate at which prices rise, which means the same peso buys less each year. This calculator compounds an average annual inflation rate over the number of years you choose, so you can see what an amount today will be worth later — or how much you would need in the future to buy what a given amount buys now.
The Bangko Sentral ng Pilipinas targets headline inflation of 2% to 4% a year, so 3% is a reasonable long-run planning assumption. Philippine inflation spiked well above that in 2018 and again in 2022–2023 on food and fuel prices, so it is worth stress-testing your plan at 5% or 6% as well.
This matters most for long-horizon money: retirement funds, an education fund for a child, and insurance coverage. A savings account paying 0.25% a year loses purchasing power against 3% inflation every single year, which is the real cost of leaving everything in a passbook.
- Future value of prices = amount × (1 + inflation rate) ^ years.
- Purchasing power of today's peso later = amount ÷ (1 + inflation rate) ^ years.
- Real return = ((1 + nominal return) ÷ (1 + inflation)) − 1. A 4% deposit rate at 3% inflation is only about 0.97% real.
- Results use one constant average rate. Actual year-to-year Philippine inflation varies, so treat the output as a planning estimate.
Frequently Asked Questions
How do you calculate inflation in the Philippines?
Multiply the amount by (1 + the annual inflation rate) raised to the number of years. At 3% a year, ₱100,000 becomes ₱134,392 in ten years — meaning you would need that much later to buy what ₱100,000 buys today.
What is the average inflation rate in the Philippines?
Philippine headline inflation has averaged roughly 3% to 4% a year over the past two decades, with sharp spikes in 2018 and 2022–2023. The BSP's official target band is 2% to 4%.
What will ₱1,000,000 be worth in 20 years?
At 3% average inflation, ₱1,000,000 will have the purchasing power of about ₱553,676 in 20 years. At 5% it falls to roughly ₱376,889.
How does inflation affect my savings?
If your savings earn less than inflation, you lose purchasing power even though the peso balance grows. A regular savings account at 0.25% loses close to 3% in real terms each year at 3% inflation — which is why digital banks, MP2, and time deposits matter for long-term money.
How much do I need to retire after inflation?
Take your desired monthly expenses today, inflate them to your retirement year with this calculator, then plan the fund needed for that inflated figure. The MoneyHub PH retirement calculator does the full projection including your SSS pension.
Is inflation the same as the cost of living?
Inflation measures the rate of change in prices; the cost of living is the actual amount you need to spend. Inflation is why the cost of living rises, but your own cost of living also depends on where you live and what you buy.