📉 Real Return Calculator
See how much your investment truly grew after adjusting for inflation.
⚙️ Input Parameters
💡 Why Real Return Matters
Nominal returns can be deceiving — your account balance may grow, but if inflation is higher, your purchasing power could actually shrink. Real return tells you what truly happened to your money.
Fisher Equation: (1 + Nominal) = (1 + Real) × (1 + Inflation)
Approximation: Real ≈ Nominal − Inflation
Approximation: Real ≈ Nominal − Inflation
❓ FAQ
What if nominal return is below inflation?
Real return is negative — your purchasing power is declining. This is why keeping all your money in low-yield savings accounts can be a losing strategy long-term.
What's the long-term real return of stocks?
US stocks historically returned ~10% nominal, ~3% inflation, ~7% real. Results vary significantly by country and time period. Past performance doesn't guarantee future results.