Lab Calculator
Real return after inflation
See what a return is worth once inflation, and tax if you set one, have taken their share.
Value, money of the dayValue, today's money
How it works
The real return is the nominal return deflated by inflation: (1 + nominal) / (1 + inflation) − 1, which is slightly less than the simple difference. Tax, if set, is taken from each year's gain before inflation. The solid line is the value in money of the day; the dashed line the same value in today's money, which is what it can buy. Purchasing power lost is how much of the nominal end value inflation has eaten.
Assumptions
Constant return, inflation and tax rate every year, tax paid yearly on the gain, no fees. Figures are in whatever currency you think in. An illustration, not a forecast.
For information and education only. Not investment advice.