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Inflation-Adjusted Returns Calculator

See what your investments are actually worth after inflation — your real rate of return, purchasing power over time, and how much inflation silently erodes your gains.

Mode
Initial investment $10,000
$
Monthly contribution $200
$
Annual return rate 7%
Annual inflation rate 3%
Time period 20 years
Inflation presets
Nominal value
$0
Before inflation
Real value
$0
In today's dollars
Purchasing power lost
$0
0% eroded
Nominal return
0%
What it looks like
Real return
0%
After inflation
Total invested
$0
contributions
Nominal vs real value over time
Nominal value
Real value (today's $)
Amount invested
Year Nominal value Real value Purchasing power lost Real return

What is the real rate of return? The real rate of return adjusts your investment gains for inflation using the Fisher equation: Real Rate ≈ Nominal Rate − Inflation Rate. If your portfolio returns 7% annually but inflation runs at 3%, your real return is approximately 4% — that's what your purchasing power actually gains each year.

This shows what inflation does to projections. DCA Pro tracks your actual portfolio performance in real time — live P&L, avg cost, weekly AI signals.

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Inflation rates use simplified annual compounding. Real return calculated using the Fisher equation approximation. Historical U.S. inflation average ~3.5% (1926–2024); Fed target 2%. Actual inflation varies significantly year to year. This calculator is for educational purposes only. Not financial advice.

How the inflation-adjusted returns calculator works

Your nominal return is what your portfolio shows on paper. Your real return is what that growth is actually worth in purchasing power after inflation. If your portfolio returns 7% when inflation runs at 3%, your real return is approximately 4%. This calculator uses the Fisher equation to show both figures side by side: nominal value, real value in today's dollars, and the purchasing power eroded over time.

The U.S. historical average inflation rate is approximately 3.5% from 1926 through 2024. The Fed's current target is 2%. Using 3-3.5% as a long-term planning assumption is reasonable. Using 0% ignores inflation entirely and will significantly overstate your real wealth accumulation.

How to use this calculator

For more context on investing in inflationary environments, read our guide on how to invest when interest rates are high.