Real return is the annual percentage return realized on an investment after adjusting for inflation. It represents the actual increase in purchasing power, not just nominal dollar growth.

How do you calculate real return?

Real Return ≈ (1 + Nominal Return) / (1 + Inflation Rate) - 1. For example, a 10% nominal return with 3% inflation gives approximately 6.8% real return. This is more accurate than simply subtracting inflation.

Why is real return important?

Real return shows whether your investments are truly growing your wealth. A 5% return with 6% inflation actually loses purchasing power. Focus on real returns when planning for retirement and long-term goals.

Inflation-Adjusted Return Calculator - Free Calculator

How to Use the Inflation-Adjusted Return Calculator

This free inflation-adjusted return calculator helps you quickly calculate real return rate. Simply enter your values in the fields above and click "Calculate" to see your results instantly.

Understanding Your Results

After entering your information, the calculator will display your results including real return rate, nominal future value, real value (today's dollars), purchasing power gain. Each result is calculated using standard formulas used by financial professionals and experts in the field.

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