Calculate the actual return on an investment after adjusting for inflation ('purchasing power').
Return Inputs
Annual rate of price increases
Real Return Analysis
Real Rate of Return3.88%Inflation-adjusted profitability
Nominal vs Real Spread3.12%Purchasing power lost to inflation
“While your bank statement shows a 7.0% gain, your money's actual buying power only increased by 3.88%.”
About this calculator
Overview
The real rate of return is the annual percentage return realized on an investment, which is adjusted for changes in prices due to inflation or other external effects.
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Pro Tips
Nominal rate is the 'stated' rate without considering inflation.
Inflation erodes the purchasing power of your money over time.
A negative real rate means your investment is growing slower than prices are rising.
The Fisher Equation is more precise than simply subtracting inflation, especially at higher rates.
