Real ROI Calculator
Your investment's headline return isn't what you actually gain: inflation quietly eats part of it. See your real return and what it means in real money.
Investment Parameters
The rate advertised or seen on your statement.
Annual loss of purchasing power.
Real Rate of Return
7.69%
This is your actual growth in purchasing power.
Formula:
((1 + Nominal) / (1 + Inflation)) - 1
See how this rate grows your money((1 + Nominal) / (1 + Inflation)) - 1
See it in your money
Nominal value
$96,463
What your statement will show
Real value
$44,024
In today's purchasing power
Your money is genuinely growing: the return comfortably outpaces inflation.
Uses the Fisher equation: real ≈ (1 + nominal) / (1 + inflation) − 1. Taxes reduce real returns further.
Related guides
Methodology
How this calculator works
Built by Andrés Soler · Updated
Formula
- Real return = (1 + nominal return) ÷ (1 + inflation) − 1 (the Fisher equation)
- Projection = amount × (1 + rate)^years, shown with the nominal and the real rate
Assumptions & limits
- Return and inflation are constant; taxes and fees are not deducted.
Sources
- Irving Fisher, The Theory of Interest (1930)
- U.S. Bureau of Labor Statistics: Consumer Price Index (CPI)
Educational estimates, not financial advice. Check important decisions with your lender or a licensed advisor.
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