Inflation-adjusted return calculator
A return of 8% sounds good until prices rise 6%. The real return shows how much your purchasing power actually grew after inflation.
This is an illustrative scenario based on the numbers you entered. It is not a forecast and not a recommendation.
How it works
The real return is (1 + nominal return) divided by (1 + inflation), minus 1. This is slightly different from simply subtracting inflation from the return. The calculator also shows what a starting amount would be worth in today's purchasing power after the chosen number of years.
Common questions
What is the difference between nominal and real return?
The nominal return is the headline number. The real return removes the effect of rising prices, so it shows the change in what the money can buy.
Which inflation number should I use?
Use an assumption you can explain, for example a recent official average. Inflation changes over time, so try several values.