Real Return After Inflation Calculator
Convert nominal investment returns into inflation-adjusted returns and purchasing power. Compare future dollars with today's dollars.
Before you calculate
One lump sum, constant annual rates, no contributions or withdrawals. Fees and taxes are excluded; enter a net return if you want those effects reflected. Inflation is an assumption, not a live CPI reading or a forecast of your personal expenses.
Is my money growing faster than prices?
An account can grow in dollars while losing purchasing power. Divide the investment growth factor by the inflation factor to find the exact real return. Subtracting inflation from return is a shortcut, not the exact calculation.
Real return = (1 + nominal return) ÷ (1 + inflation) − 1; purchasing power = starting amount × (1 + real return)^years
Worked example
A 5% return with 3% inflation has a real annual return of 1.94%, not exactly 2%. With equal return and inflation, purchasing power is unchanged.
Assumptions and limits
One lump sum, constant annual rates, no contributions or withdrawals. Fees and taxes are excluded; enter a net return if you want those effects reflected. Inflation is an assumption, not a live CPI reading or a forecast of your personal expenses.
How to interpret MoneyCalc estimatesFrequently asked questions
Can my account balance rise while I lose purchasing power?
Yes. If prices rise faster than the balance, the money buys less even though the nominal dollar amount is higher.
Does this use current inflation data?
No. Enter your own assumption and compare scenarios. Official inflation measures describe a basket of prices and may differ from your own spending.
Further reading
Background resources; these organizations do not endorse this calculator.
Sources & calculation notes
Maintained by MoneyCalc. Results are estimates based on the inputs and assumptions shown, not personalized financial advice or a lender quote. Default rates are examples unless a specific tax year or official table is identified.
References explain the underlying concepts or rules. They do not endorse or independently certify this implementation.
Calculations run in your browser. Some tools retain settings on this device. Displayed rounding can produce small differences from a statement or contract.