Real Rate of Return Calculator
Strip inflation out of an investment return to see the real growth in buying power.
A nominal return is the headline number. The real return is what is left after inflation.
Only the real return makes you richer. The rest just keeps up with prices.
How it works
Subtracting inflation from the return is close but not exact. The Fisher equation divides instead, which is slightly lower.
Enter an amount and years to see nominal and real growth plotted together.
The formula
nominal = return as a decimal, inflation = inflation as a decimal.
Tips
- Judge every long term plan in real terms. Nominal numbers flatter.
- A savings account at 4% with 3% inflation earns under 1% in real terms, before tax.
Frequently asked questions
What is a good real return?
US stocks have delivered about 6% to 7% a year after inflation over long periods. Bonds are closer to 1% to 2%.
This is not financial advice. Nothing on this site is investment, tax, legal or financial advice of any kind.
The calculators give simplified estimates from the numbers you enter. They ignore taxes, fees, rate changes and real market returns, and they can be wrong.
Do not make financial decisions based on these results. Speak to a licensed financial adviser, accountant or lender before acting, and read the full disclaimer.