Real Return Calculator (After Inflation)
Convert a nominal investment return into a real, inflation-adjusted return — and see what your money is really worth after a number of years.
For information and education only — not financial advice. Results are estimates based on the numbers you enter; check important decisions with a qualified professional.
How to use
- 1Enter the nominal return and the inflation rate.
- 2Optionally enter an amount and years to see the real growth.
How it's calculated
Real return = (1 + nominal) ÷ (1 + inflation) − 1 (the Fisher equation). The quick approximation is nominal − inflation.
Frequently asked questions
Why not just subtract inflation?
Subtracting is a close approximation for low rates, but the exact formula divides. At 10% return and 5% inflation, the real return is 4.76%, not 5%.
Can the real return be negative?
Yes — savings earning 2% while inflation is 4% lose about 1.9% of their buying power per year.
Should I also deduct taxes?
For a full picture, yes: tax reduces the nominal return before adjusting for inflation.