Is Your Savings Profit Beating Inflation? Rs 20,000 a Month for 5 Years
Saving Rs 20,000 a month at 0%, 8%, 10% and 12% profit, and what the result is worth in today's money at 6% and 10% inflation.
By the TurantTools PK team · Updated 28 October 2026 · 2 min read
Earning profit on savings isn't enough; what matters is what the money will buy after inflation. Here's saving Rs 20,000 a month for 5 years, Rs 1,200,000 put in altogether.
Profit against inflation
| Profit a year | After 5 years | In today's money (6% inflation) | In today's money (10% inflation) |
|---|---|---|---|
| Cash at home (0%) | Rs 1,200,000 | Rs 896,710 | Rs 745,106 |
| 8% | Rs 1,469,537 | Rs 1,098,124 | Rs 912,467 |
| 10% | Rs 1,548,741 | Rs 1,157,310 | Rs 961,647 |
| 12% | Rs 1,633,393 | Rs 1,220,567 | Rs 1,014,209 |
If the profit rate is below inflation, your balance grows on paper but buys less. Cash kept at home loses the most.
In practice
- Always compare a profit rate with the latest inflation (CPI), which the Pakistan Bureau of Statistics publishes every month.
- Banks deduct withholding tax on profit, so what you keep is a bit below the quoted rate.
- Keep a few months' spending in an account you can reach easily, and the rest for the long term.