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About this tool
Convert nominal returns into real, inflation-adjusted returns over any period and see what your money is truly worth.
Inflation Adjusted Return Calculator converts a headline (nominal) return into the real return you actually keep once inflation is stripped out, using the exact Fisher equation rather than the rough 'return minus inflation' shortcut. It also shows what your investment is worth in today's money after any number of years, and optionally accounts for tax on returns. It's for investors comparing FDs, debt funds and equity on a like-for-like basis.
Open Inflation Adjusted Return Calculator on AltFTool — it loads instantly in your browser.
Enter the values you already know.
Fine-tune the options to match your scenario.
Read the result and use it in your planning or reporting.
Uses (1 + nominal) ÷ (1 + inflation) − 1 instead of simple subtraction, which overstates real returns.
Shows the future corpus restated in current rupees so the number means something.
Apply a tax rate on returns to compare taxable and tax-free instruments fairly.
Nominal return is the headline percentage an investment quotes. Real return is what's left after inflation, and it's the only figure that tells you whether your purchasing power actually grew.
Subtraction is a quick approximation that overstates the real return, and the gap widens as rates rise. At 12% return and 6% inflation, subtraction gives 6% but the exact real return is about 5.66%.
Yes. Any time inflation runs higher than your post-tax return — common with savings accounts and low-yield deposits — the real return is negative and your money buys less over time.
Many Indian investors plan with 6% as a long-run CPI assumption, but personal inflation for education, healthcare or rent is often higher. Run the calculation at a couple of rates to see the range.
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