How calculate the inflation about a loan?

Trying to follow your logic. In an example, let's say you owe 8% on a $1000 loan. In simple interest, you will pay $80 in interest that you will never see again.

If you borrow the $1000 today and next year inflation is 10%, your buying power is the original $1000, less inflation ($1000 x 10%) of $100 or $900. I think you are thinking that you are $20 better off with the loan, and you well might be...but:

10% inflation is unheard of.
The $80 saved at 10% interest will double in 7 years.
Put it in retirement and save on taxes as well (except for a Roth IRA).
Go with the sure thing and get debt payed off as soon as you can.

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