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Finance

Real Return Calculator

Adjust a nominal percentage return for inflation over the same period.

Amounts stay on this deviceMethod and assumptions below

Your financial inputs

Runs on your device

YOUR FINANCIAL SUMMARY

Your result

Let’s calculate.

Use the Calculate button to see your result.

Estimate based on your inputs and the stated assumptions.

How to use this tool

  1. Enter nominal return, inflation.
  2. Select Calculate to view the result.
  3. Check the method and assumptions below before using the result.

The method, explained

Real return = [(1 + nominal return/100) ÷ (1 + inflation/100) − 1] × 100.

A WORKED EXAMPLE

An 8% nominal return with 3% inflation corresponds to approximately 4.8544% real return.

What to keep in mind

Use return and inflation covering the same period. Taxes and fees are excluded unless reflected in nominal return; the inflation rate is user supplied.

Common questions

Can I just subtract inflation?

That is an approximation. The ratio formula accounts for compounding between the two percentage changes.

Can real return be negative?

Yes. Purchasing power falls when the nominal result does not keep pace with inflation.

Methodology maintained by ClarityKit. How these tools are built and checked.