Inflation Adjusted Return Calculator
Strip inflation out of a return to see what you actually gained in buying power.
Method
How it works
Starting value, ending value and holding period produce a nominal compound annual growth rate. The calculator then adjusts that rate using the entered annual inflation rate rather than simply subtracting inflation.
Real value discounts the ending amount by compounded inflation over the full period. Real gain compares that inflation-adjusted ending value with the starting value, showing the change in purchasing power under the constant-inflation assumption.
Common questions
Frequently asked questions
Why is real return not just nominal return minus inflation?
The formula divides one plus the nominal rate by one plus inflation, then subtracts one, which accounts for their compounding relationship.
What does ending value in today's money mean?
It is the entered ending value divided by compounded inflation across the holding period.
Does the calculator use actual historical inflation?
No. It applies the single annual inflation rate entered by the user for every year.
Not financial advice. This calculator is for general informational purposes only. Check figures independently before making financial decisions.