Inflation-Adjusted Return Calculator 📉
Find your **Real Rate of Return**. Calculate the true growth of your investments by netting out the impact of **inflation** on your purchasing power.
Return Parameters
The Real Growth Metric
The **Inflation-Adjusted Return** (or Real Return) tells you how much your purchasing power actually increased due to an investment. If your investment earns 5% but inflation is 3%, your money only grew by enough to buy 2% more goods, not 5%.
The Fisher Equation (Precise Formula)
The most accurate method for calculating the real rate of return is the Fisher Equation, as it correctly accounts for the compounding effect of inflation.
Real Rate = [ (1 + r) / (1 + i) - 1 ] × 100
Where:
r = Nominal Rate (decimal: Nominal % / 100)
i = Inflation Rate (decimal: Inflation % / 100)
**Note:** This calculator first adjusts the nominal return for your tax rate to find the *After-Tax Nominal Return*, which is then used in the Fisher Equation.