Real Returns Calculator

Real return is the actual return on your investment after accounting for inflation. It shows how much your purchasing power has truly increased. A 10% return with 6% inflation gives a real return of only about 3.77%, not 4%.

Real Return Formula:

Real Return = ((1 + Nominal Rate) / (1 + Inflation Rate)) - 1

Approximate: Real Return ≈ Nominal - Inflation

Example: 12% return, 6% inflation
Real Return = (1.12 / 1.06) - 1 = 5.66%

Real Value = Investment × (1 + Real Return)^Years

Enter your investment amount, expected nominal return rate, expected inflation rate, and time period. The calculator shows your actual purchasing power gain.