Money & shopping
Inflation-adjusted return
Compare an effective return with inflation over the same period.
A clear answer. Here’s how.
Real return = (1 + nominal return)/(1 + inflation) − 1. Both rates must refer to the same period and exceed −100%. Uses the exact ratio rather than subtracting the rates. Excludes tax, fees and differences between a personal spending basket and general inflation.
See a worked example
Worked example
A fixed demonstration, separate from the values you enter above.
- Effective nominal return (%)
- 7
- Inflation over the same period (%)
- 3
Example result
- Real return
- 3.88349514563%