Real Return calculator.
Use this free real rate of return calculator to turn a nominal return into an inflation-adjusted one — and see what your investment will really be worth in today’s dollars.
Use the Personal Loan Calculator.
Results update automatically as you type. No account is required.
Enter the details
Investment
Your starting amount and any fixed amount you add at the end of each year.
Rates & time
Your expected nominal return, the inflation rate to strip out, and how long you stay invested.
A 7% nominal return with 3% inflation is a real return of 3.88% per year. After 20 years, $10,000 invested grows to $38,697 on paper — but that is worth only $21,426 in today’s money.
Nominal vs. real growth
Your balance in raw dollars keeps climbing, but its real value — what it can actually buy in today’s money — grows more slowly. The gap is inflation.
Amortization schedule
Every payment split into principal and interest, with your balance falling to zero. Switch between the month-by-month view and a yearly summary.
| Year | Nominal value | Real value | Invested |
|---|---|---|---|
| 1 | $10,700.00 | $10,388.35 | $10,000.00 |
| 2 | $11,449.00 | $10,791.78 | $10,000.00 |
| 3 | $12,250.43 | $11,210.88 | $10,000.00 |
| 4 | $13,107.96 | $11,646.25 | $10,000.00 |
| 5 | $14,025.52 | $12,098.53 | $10,000.00 |
| 6 | $15,007.30 | $12,568.38 | $10,000.00 |
| 7 | $16,057.81 | $13,056.47 | $10,000.00 |
| 8 | $17,181.86 | $13,563.52 | $10,000.00 |
| 9 | $18,384.59 | $14,090.26 | $10,000.00 |
| 10 | $19,671.51 | $14,637.45 | $10,000.00 |
| 11 | $21,048.52 | $15,205.90 | $10,000.00 |
| 12 | $22,521.92 | $15,796.42 | $10,000.00 |
| 13 | $24,098.45 | $16,409.87 | $10,000.00 |
| 14 | $25,785.34 | $17,047.15 | $10,000.00 |
| 15 | $27,590.32 | $17,709.17 | $10,000.00 |
| 16 | $29,521.64 | $18,396.91 | $10,000.00 |
| 17 | $31,588.15 | $19,111.35 | $10,000.00 |
| 18 | $33,799.32 | $19,853.54 | $10,000.00 |
| 19 | $36,165.28 | $20,624.55 | $10,000.00 |
| 20 | $38,696.84 | $21,425.50 | $10,000.00 |
About the Real Rate of Return Calculator
A nominal return is the headline growth rate you see quoted; the real return is what is left after inflation eats away at your purchasing power. This calculator converts one into the other and projects your investment’s value both on paper (nominal) and in today’s money (real), so you can see what your savings will actually buy in the future.
How the real return is calculated
It uses the Fisher relationship: real return = (1 + nominal) ÷ (1 + inflation) − 1. A common shortcut is simply nominal minus inflation, which is close but slightly overstates the result. For example, a 7% nominal return with 3% inflation gives a real return of about 3.88% per year — not 4%.
Why real return matters
Two investments with the same nominal return can leave you very differently off depending on inflation. If your return trails inflation, your real return is negative and your money loses purchasing power even as the balance grows. Planning in real terms — today’s dollars — keeps savings goals, retirement income, and spending needs honest.
Reading the results
The nominal line shows your raw balance; the real line shows the same balance expressed in today’s money. The widening gap between them is the cost of inflation over time. The real future value tells you what your investment could actually buy if you cashed out at the end and spent it in today’s prices.
Important disclaimer
⚠ Disclaimer: This calculator is for general education and planning only and is not financial advice. It assumes constant nominal and inflation rates and does not account for taxes, fees, or variable returns. Real markets fluctuate, so treat the figures as estimates.
Related calculators
Investment Calculator · Inflation Calculator · ROI Calculator · Compound Interest Calculator
Real Rate of Return FAQ
What is the difference between nominal and real return?
Nominal return is the raw percentage your investment grows. Real return is that figure adjusted for inflation — what your money can actually buy afterwards. Real return is always lower than nominal when inflation is positive.
How do you calculate real rate of return?
Use (1 + nominal rate) ÷ (1 + inflation rate) − 1. Subtracting inflation from the nominal rate is a quick approximation but slightly overstates the true real return.
Can the real return be negative?
Yes. If inflation is higher than your nominal return, your real return is negative and your money loses purchasing power over time even though the balance rises.
What is a good real rate of return?
Historically, diversified stock portfolios have delivered roughly 6–7% real returns over the long run, while cash and bonds are much lower. Anything above 0% means you are beating inflation.
Why show value in today’s dollars?
A large future balance can be misleading if prices also rise. Expressing it in today’s money shows its real purchasing power, which is what matters for planning goals and retirement.
Does this include taxes?
No. It models pre-tax returns and inflation only. Taxes on gains, interest, or withdrawals would further reduce your effective real return.
Is this real return calculator free?
Yes. It is free, requires no sign-up, and runs entirely in your browser.