Calculate your inflation-adjusted (real) return and the purchasing power of your investment.
| Input | Result |
|---|---|
| 8% return, 3% inflation, 10 yrs, $10,000 | 4.85% real return · $16,064 in today's money |
| 7% return, 2.5% inflation, 20 yrs, $10,000 | 4.39% real return · $23,616 in today's money |
| 5% return, 4% inflation, 5 yrs, $10,000 | 0.96% real return · $10,490 in today's money |
Because a 5% gain during 4% inflation leaves only about 1% of extra purchasing power. Real return is what actually improves your standard of living.
It is a close approximation for low rates, but the exact formula divides (1 + nominal) by (1 + inflation), which is what this calculator uses.
No. To get your true net real return, subtract taxes and fund fees from the nominal return before entering it.