Note: Historically, the Philippines averages between 3% to 6% annually.
Calculation Result:
In , the value of ₱ would be equivalent to:
₱0.00
Understanding Inflation in the Philippines
Inflation is the rate at which the general level of prices for goods and services is rising, and subsequently, how the purchasing power of the Philippine Peso (PHP) is falling. For Filipinos, this means that as inflation increases, every Peso you own buys a smaller percentage of a good or service compared to previous years.
How the Philippine Peso Inflation Calculator Works
This tool uses the compound interest formula to determine the future value of money based on a set annual inflation rate. The Bangko Sentral ng Pilipinas (BSP) typically aims for an inflation target of 2% to 4%, though actual figures often fluctuate due to global oil prices, agricultural supply, and economic shifts.
Key Metrics Explained
Initial Amount: The sum of money in your starting year.
Purchasing Power: The real value of your money. If inflation is high, you need more pesos to buy the same basket of goods (like rice, fuel, and electricity).
Cumulative Inflation: The total percentage increase in price levels over the entire period selected.
Practical Example
Suppose you have ₱10,000 in 2020. If the average annual inflation rate in the Philippines is 5%, by 2024 (4 years later), those same goods would cost approximately ₱12,155.06. This indicates a 21.55% increase in the cost of living over that period.
Expert Tip: To protect your savings from being eroded by inflation in the Philippines, consider investments that offer returns higher than the annual inflation rate, such as PAG-IBIG MP2, treasury bonds, or diversified stock portfolios.
function calculateInflation() {
var initialAmount = parseFloat(document.getElementById('initialAmount').value);
var startYear = parseInt(document.getElementById('startYear').value);
var endYear = parseInt(document.getElementById('endYear').value);
var rate = parseFloat(document.getElementById('inflationRate').value);
if (isNaN(initialAmount) || isNaN(startYear) || isNaN(endYear) || isNaN(rate)) {
alert("Please enter valid numbers in all fields.");
return;
}
if (endYear <= startYear) {
alert("The 'To Year' must be greater than the 'From Year'.");
return;
}
var timePeriod = endYear – startYear;
var rateDecimal = rate / 100;
// Formula: FV = PV * (1 + r)^n
var futureValue = initialAmount * Math.pow((1 + rateDecimal), timePeriod);
var cumulativeInflation = ((futureValue – initialAmount) / initialAmount) * 100;
document.getElementById('resEndYear').innerText = endYear;
document.getElementById('resInitial').innerText = initialAmount.toLocaleString('en-PH', {minimumFractionDigits: 2, maximumFractionDigits: 2});
document.getElementById('finalValue').innerText = "₱" + futureValue.toLocaleString('en-PH', {minimumFractionDigits: 2, maximumFractionDigits: 2});
var summaryText = "This represents a total price increase of " + cumulativeInflation.toFixed(2) + "% over " + timePeriod + " years. Your money lost " + (100 – (initialAmount / futureValue * 100)).toFixed(2) + "% of its original purchasing power.";
document.getElementById('resultSummary').innerText = summaryText;
document.getElementById('resultsArea').style.display = "block";
}