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Inflation Adjusted Return Calculator

Find the real return after inflation eats into it.

Inflation Adjusted Return Calculator Runs locally
Enter your values and press Calculate.

All calculations happen locally in your browser — nothing is uploaded, stored or tracked.

STEP 01

Enter the nominal return

The rate your investment is earning.

STEP 02

Enter the inflation rate

Your assumption, e.g. 2–3%.

STEP 03

Choose the period

See the real growth over the years.

What Is a Real Return?

A nominal return is what your investment statement shows — the raw percentage gain. But if inflation is 3%, part of that gain just keeps pace with rising prices. The real return is what remains after inflation: the actual increase in purchasing power.

The calculator converts a nominal annual return into its real equivalent using the exact formula, and shows the difference over any number of years.

The Formula

Real return = (1 + nominal) ÷ (1 + inflation) − 1

This exact (Fisher) formula is more accurate than simply subtracting: with 8% nominal and 3% inflation, the real return is (1.08 ÷ 1.03) − 1 ≈ 4.85%, not 5%.

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Every calculation on this site runs in your browser using vanilla JavaScript. Nothing is uploaded, stored or tracked.

  • 100% local, client-side calculations
  • No data stored on any server
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  • Works offline once loaded

Frequently Asked Questions

What is the difference between nominal and real return?

Nominal is the headline percentage; real subtracts inflation's effect, showing the true gain in purchasing power.

How do I calculate the real rate of return?

Use (1 + nominal) ÷ (1 + inflation) − 1. The calculator applies this exact formula.

Why isn't it just nominal minus inflation?

That is an approximation. The exact formula is slightly lower — 4.85% vs 5% in the 8%/3% example — because inflation compounds on the gain too.

What inflation rate should I use?

A long-run historical average for your currency, commonly 2–3%, or a figure you forecast. The calculator uses your input.

Why do real returns matter for retirement?

Your spending power is what matters in retirement, so growth must be measured after inflation.