Real Rate of Return Calculator
A free, browser-based calculator. Runs entirely in your browser — no sign up, nothing stored.
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Enter Values
Enter your values and press Calculate to see results.
How to use this calculator
- Enter your nominal (stated) return and the inflation rate.
- Read the real, inflation-adjusted return.
How it works
Real return = (1 + nominal) ÷ (1 + inflation) − 1. The quick 'nominal − inflation' is close but slightly off at higher rates.
Worked example
7% return, 3% inflation. Real return ≈ 3.88% (the rough estimate gives 4%).
Common mistakes
- Just subtracting inflation — it's a good approximation but understates the gap at higher rates.
- Ignoring tax, which further reduces the return you keep.
Frequently asked questions
Why does inflation matter for returns?
A 7% return when prices rise 3% only grows your buying power by about 3.9% — the real return is what actually makes you better off.
Related tools
Tip: Enter any known values to calculate the remaining results.
All calculations run in your browser. Your inputs are never saved or transmitted.