1. What is the MAS Inflation Calculator?

The MAS (Monetary Authority of Singapore) Inflation Calculator helps you understand how the value of money changes over time due to inflation. It calculates the future value of an amount based on a constant yearly inflation rate.

2. How Does the Calculator Work?

The calculator uses the compound inflation formula:

Where:

• \( Original \) — Original amount in SGD
• \( Yearly\ Rate \) — Annual inflation rate as percentage
• \( Years \) — Number of years for calculation

Explanation: The equation accounts for compounding effects of inflation over multiple years.

3. Importance of Inflation Calculation

Details: Understanding inflation helps with financial planning, investment decisions, and maintaining purchasing power over time.

4. Using the Calculator

Tips: Enter original amount in SGD, yearly inflation rate as percentage (can be negative for deflation), and number of years. All values must be valid (amount > 0, years between 1-100).

5. Frequently Asked Questions (FAQ)

Q1: What is a typical inflation rate in Singapore?
A: Historically, Singapore's inflation rate has averaged around 2-3% annually, though it varies by year and economic conditions.

Q2: Can I use this for salary adjustments?
A: Yes, this can help estimate how much salary should increase to maintain purchasing power.

Q3: Why is the result different when I calculate year by year?
A: Due to rounding differences. This calculator uses precise compounding without intermediate rounding.

Q4: Can I calculate deflation?
A: Yes, simply enter a negative rate to see how value increases during deflationary periods.

Q5: How accurate is this for long-term projections?
A: Less accurate for long periods as inflation rates rarely stay constant for decades.