Inflation-Adjusted Returns Calculator
See what a nominal return actually means after inflation, the real growth in your purchasing power.
Real Return Calculator
Inflation-Adjusted Return
How to use this
Enter the nominal return your investment earns and the inflation rate you expect. The calculator shows the real return: the growth in what your money can actually buy. This distinction matters more than most investors realise. A fixed deposit earning 7% while inflation runs at 6% grows your purchasing power by barely 1% a year; after tax on the interest, the real return can even turn negative. That is the quiet way conservative portfolios lose wealth over decades. Note that the real return is not simply the nominal return minus inflation. The correct formula divides rather than subtracts, and the gap between the two widens as rates rise. For India, CPI inflation has historically averaged in the mid single digits, which is a reasonable starting assumption for long-horizon planning.
From the research
How The Valuation Node Approaches Research
The research method behind The Valuation Node, how assumptions are stated, how sources are chosen, and how uncertainty is disclosed in every published analysis.
ValuationWhat Three Years of a Cash Flow Statement Reveals That One Year Hides
A single year of cash flow is a snapshot. Three years is a story. Learn what the trend reveals about earnings quality, funding, and sustainability.
ValuationComparing Two Companies on ROE, and Why the Higher One Is Not Always Better
Two companies can report the same ROE for very different reasons. DuPont analysis shows why an ROE built on leverage is not the same as one built on quality.