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Inflation Adjusted Return Calculator

Work out inflation adjusted return instantly with clear inputs, formula shown and shareable results.

About Inflation Adjusted Return Calculator

Only the real return builds purchasing power. Deflating the nominal return by inflation through the Fisher relation shows what the investment actually buys at the end, which is usually far less than the headline balance suggests.

Formula

Real return

real = (1 + nominal)/(1 + inflation) - 1; Real value = P(1 + real)^t

Worked example

With the default values below, Inflation Adjusted Return Calculator returns Real Annual Return of 4.717%. Change any input above and every figure here is recalculated in your browser.

Inputs used

Amount Investedminimum 0
500,000
Nominal Annual Returnaccepts 0–100 %
11 %
Inflation Rateaccepts 0–100 %
6 %
Years Investedaccepts 1–50
10

Results

Real Annual Return
4.717%
Value In Today's Money
$792,758.92
Nominal Value At Maturity
$1,419,710.49
Value Lost To Inflation
$626,951.57

Step by step

  1. 1Values used
  2. 2Real return
  3. 3Real Annual Return= 4.717
  4. 4Value In Today's Money= 792,758.92
  5. 5Nominal Value At Maturity= 1,419,710.49
  6. 6Value Lost To Inflation= 626,951.57

Assumptions and limits

  • The result is derived only from the 4 inputs listed above. Anything not among them is not part of the calculation.
  • In particular, this calculator does not take tax or fees or charges into account.
  • Figures are rounded for display to 3 decimal places, so totals built from several rounded parts can differ slightly from the unrounded arithmetic.
  • Figures are estimates for planning only. Market returns are not guaranteed, and rates, limits and tax rules change. This is not financial or tax advice — speak to a qualified adviser before acting.
  • This is an estimate for general information and not professional financial, tax or legal advice. See the full disclaimer for the limits that apply to this kind of calculator.

How these calculators are built and tested is described on the Methodology page. If a figure looks wrong, please report it.

Figures are estimates for planning only. Market returns are not guaranteed, and rates, limits and tax rules change. This is not financial or tax advice — speak to a qualified adviser before acting.

Frequently Asked Questions

Is a 11% return good with 6% inflation?

It is about 4.7% real — positive but modest, and taxes would cut it further.

Should inflation be the headline index?

Use the inflation you actually face; education and healthcare costs often rise faster than the general index.

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