Calculate real returns on investments considering inflation rate and nominal returns
Inflation-adjusted return is the return on an investment after adjusting for inflation. It represents the real increase in purchasing power of the investment. This calculator helps you understand how inflation affects your investments.
Inflation can erode the purchasing power of your returns. For instance, if you earn a 5% return on an investment but inflation is 3%, your real return is only 2%. This calculator allows you to input your nominal return and the inflation rate to find your real return.
To use this calculator, simply input your initial investment, the nominal return rate, and the inflation rate. The calculator will then provide you with the inflation-adjusted return, giving you a clearer picture of your investment's performance.
| Initial Investment | Nominal Return | Inflation Rate | Inflation-Adjusted Return |
|---|---|---|---|
| $1,000 | 5% | 2% | 2.94% |
| $5,000 | 8% | 3% | 4.85% |