How do I calculate real return after inflation?

Real return = (1 + Nominal Rate) ÷ (1 + Inflation Rate) − 1. This Fisher equation gives a more precise result than simply subtracting inflation from the nominal rate.

Inflation-Adjusted Return Calculator

Estimate a real return after inflation.

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Nominal return (%)

Inflation rate (%)

Years (years)

Initial investment ($)

About This Calculator

Nominal returns tell you how much money you made. Real returns tell you how much purchasing power you gained. If you earned 8% but inflation ran at 4%, you only became 3.8% richer in real terms. This calculator uses the Fisher equation to derive the true real return.

Estimates only — not financial, tax, legal, or investment advice. Verify important results with a qualified professional before making decisions.

real return = (1 + nominal) ÷ (1 + inflation) − 1 (fisher equation); real value = principal × (1+real)^years