Real vs Nominal Return Calculator

Use the Fisher equation to convert nominal investment returns into real (inflation-adjusted) returns. See what your money actually earns.

Financial Disclaimer

This calculator is for educational purposes only and does not constitute financial advice. Results are estimates based on the inputs provided. Consult a qualified financial advisor before making investment or financial planning decisions.

Inputs

Nominal Return (%)

Inflation Rate (%)

Investment Amount ($)

Investment Period (years)

Tax Rate on Returns (%)

Tab to move between fields

Results

Real Return (%)

6.8%

After-Tax Real Return (%)4.66%

Nominal Future Value ($)$672,749.99

Real Future Value ($)$372,485.36

After-Tax Real FV ($)$248,674.2

Inflation Erosion ($)$300,264.63

Tax Drag ($)$123,811.16

Approximation Error (%)0.2%

How to Use This Calculator

Enter the nominal return rate on your investment (e.g., 10% for the stock market).
Set the annual inflation rate (U.S. historical average is about 3%).
Enter your investment amount and time period in years.
Set your tax rate on investment returns.
Review the real return (after inflation), after-tax real return, and the inflation erosion and tax drag in dollar terms.
The real return — not the nominal return — represents your actual gain in purchasing power.

Ad Placeholder