Real Return Calculator (Inflation-Adjusted)
A 7% statement return means less than it looks like when inflation eats 3% of it. This calculator shows your real return and what a future balance is worth in today's dollars.
How to use this calculator
- Enter nominal annual return.
- Enter inflation rate.
- Enter number of years.
- Enter amount invested today.
- Your results appear instantly below and update as you change the numbers.
How this calculator works
The real return is (1 + nominal return) ÷ (1 + inflation) − 1. The calculator then projects your investment at the nominal rate and deflates the result at the real rate to show its purchasing power in today's dollars — the number that matters for planning.
Frequently asked questions
Why does real return matter for retirement planning?
Because future prices are higher. If you plan with nominal returns you overestimate what your savings will buy. Using a real return — roughly 7% stocks, 3% bonds, before taxes — gives a target in today's dollars.
What is the long-run real return of stocks?
The S&P 500 has produced roughly 6% to 7% real per year over the long run — about 10% nominal minus 3% inflation. Bonds have delivered only 1% to 2% real.
Does this account for taxes?
No — use after-tax returns for an apples-to-apples picture. In a taxable account, your nominal return shrinks by the tax you pay each year, which can cut the real return noticeably.
Disclaimer: Results are estimates for general information only and do not constitute financial, tax, or legal advice. Figures reflect 2026 rules and may change. Always confirm current limits and consult a qualified professional before making decisions. Official figures: IRS.gov · 2026 limits per IRS tax inflation adjustments.