PLANNING / FREE TOOL
Inflation-adjusted return calculator
Calculate inflation-adjusted investment return and future purchasing power using your own nominal return, inflation assumption and time period.
YOUR SCENARIO
Constant hypothetical annual rates with no additional contributions, fees or taxes. Purchasing power is expressed in today’s selected currency.
How it works
Real annual return = (1 + nominal return) ÷ (1 + inflation) − 1. Purchasing power = future nominal balance ÷ (1 + inflation)^years.
Worked example
With 1,000 invested for 10 years at an assumed 8% annual return and 4% annual inflation, the nominal balance is about 2,158.92. Its purchasing power is about 1,458.49 in today’s money. The real annual return is about 3.85%.
Common questions
What is an inflation-adjusted return?
It measures growth in purchasing power. The exact annual calculation is (1 + nominal return) divided by (1 + inflation), minus 1. Simply subtracting the two percentages is an approximation.
Can I use this for Nigeria or another country?
Yes. Enter your own inflation assumption and return in one currency. The calculator does not fetch current inflation data, predict prices or convert currencies.
Does the result include regular deposits?
No. This scenario uses one starting amount and constant annual assumptions. Additional contributions, fees and taxes are excluded.
Put your next question into words.
Continue your research with God’s Eye, PBM’s AI assistant. An account is required; AI can make mistakes.
Open God’s Eye →Keep exploring
Stock return calculator
Understand a share investment’s gain or loss after dividends and fees.
Open tool →IncomeDividend calculator
Estimate cash dividends and yield for the payment period you enter.
Open tool →PlanningCompound interest calculator
Explore an initial investment with monthly contributions and a chosen return.
Open tool →