Real Return Calculator
Calculate the real return on your investments adjusted for inflation. Understand how inflation affects your investment growth and purchasing power over time.
Step 1: Investment Details
Understanding Real Return
Real return is your investment return adjusted for inflation. It shows the actual purchasing power of your money over time, not just the nominal dollar amount.
Step 2: Inflation & Tax Details
About Inflation Impact
Inflation reduces the purchasing power of money over time. A 3% inflation rate means prices double every 24 years. Real return accounts for this erosion of value.
Real Return Results
Real Value of Investment (After Inflation)
Investment Type Comparison
| Investment Type | Avg. Return | Real Return | Final Value (20 yrs) | Risk Level |
|---|
Real Return Analysis
Real Return Formula
Real Return = [(1 + Nominal Return) ÷ (1 + Inflation Rate)] – 1
The real return formula adjusts nominal returns for inflation to show the actual increase in purchasing power. This calculation accounts for the erosion of value caused by rising prices over time.
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