A one-time amount.
Your own assumption, not a promised or guaranteed return.
Your own assumption. RBI's target is 4% (±2%).
Holding period.
Quick examples
10% nominal return with 6% inflation.
What each result means
Real return
What it is: (1 + nominal) ÷ (1 + inflation) − 1.
Your value: 3.77%
Growth in buying power.
Nominal value
What it is: Amount grown at the nominal return.
Your value: ₹2,59,374
The rupee figure you'd see.
Value in today's money
What it is: Nominal value ÷ (1 + inflation)ʸ.
Your value: ₹1,44,833
What it can actually buy.
Year-by-year breakdown
| Year | Nominal value (₹) | Price level (× today) | Value in today's money (₹) | Real gain (₹) |
|---|---|---|---|---|
| 1 | ₹1,10,000 | 1.060× | ₹1,03,774 | ₹3,774 |
| 2 | ₹1,21,000 | 1.124× | ₹1,07,690 | ₹7,690 |
| 3 | ₹1,33,100 | 1.191× | ₹1,11,753 | ₹11,753 |
How to read this: the nominal column is what you'd see on a statement; the today's-money column removes inflation.
Showing the first 3 of 10 years. Want charts, formulas and the full schedule? Get the detailed PDF.
What this calculator does
This calculator removes inflation from an investment's return using the Fisher relation, showing how much your buying power grows.
What your result means
A positive real return means your money buys more over time under your assumptions; negative means it buys less.
Formula
1. Fisher relation
Symbols
- r
- Nominal return
- inf
- Inflation
Worked example
10% nominal, 6% inflation: 1.10 ÷ 1.06 − 1 ≈ 3.77% (not 4%).
Common mistakes
Simply subtracting inflation from the return — close, but not exact.
Working for your numbers
- Real = 1.1000 ÷ 1.0600 − 1 = 3.7736%
- Nominal = ₹1,00,000 × 1.1000^10 = ₹2,59,374
- Today's money = ₹2,59,374 ÷ 1.0600^10 = ₹1,44,833
Frequently asked questions
Why not just subtract inflation?
Subtraction is an approximation. The exact figure divides, because inflation and return both compound.
Is the return on this page guaranteed?
No. Every rate here is your own assumption. Market-linked results go up and down; this page shows what the numbers give under your assumptions, not a promise.
When should I talk to a professional instead?
Before a real decision, especially a large or long-term one, speak to a SEBI-registered investment adviser or a qualified professional. This page is educational only.
Symbols and assumptions
- r
- Nominal return
- inf
- Inflation
- y
- Years
- Constant return and inflation.
- Does not account for taxes, fees, expense ratios or exit loads.
Sources and review
Reviewed 2026-09-29 · Next review 2027-09-29
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Related Calculators
How it works
Measures the actual increase in purchasing power after subtracting inflation.
The formula
Real Return = ((1 + Nominal Rate) / (1 + Inflation Rate)) - 1- Nominal
- The stated return rate
Worked example
10% return with 6% inflation gives a real return of ~3.77%.
Pro tips
- Aim for investments that provide positive real returns.
- Inflation is the 'hidden tax' on your wealth.
Common mistakes
- Focusing only on nominal returns (e.g., FD at 7% vs 6% inflation).
Go deeper
Concepts to explore
Related guides
Institutional grade calculations are illustrative and for educational wealth architecture. Results do not constitute investment advice.