Input type
Real Wealth Estimator
Inflation-adjusted return calculator
Enter your investment amount, nominal return, inflation rate, and tenure to see the real purchasing power of your wealth after inflation.
Nominal vs real return
Inflation impact
Purchasing power
Best for
Real wealth planning
Output
Real value of money
Enter investment details
Provide investment amount, nominal return, inflation rate, and period.
Before you calculate
- Nominal return is the stated return before adjusting for inflation.
- Real return = (1 + nominal) / (1 + inflation) − 1.
- India's average CPI inflation is typically 5–7% annually.
Why adjust for inflation?
Nominal returns can look attractive but inflation erodes purchasing power. A 12% nominal return with 7% inflation gives only ~4.7% real return — the actual increase in wealth.
About Inflation-adjusted Returns
Real return accounts for the eroding effect of inflation on purchasing power. It answers: "How much more can I actually buy with my investment after it matures?"
Fisher equation
Real return ≈ Nominal return − Inflation rate. The exact formula is: (1 + nominal) / (1 + inflation) − 1, which is slightly different from simple subtraction.
Why this matters
If your FD earns 7% and inflation is 6.5%, your real return is only ~0.47%. You are barely preserving wealth and not growing it meaningfully.
Beating inflation
Equity markets have historically delivered 10–14% CAGR in India, comfortably beating 6% average inflation and generating real wealth over long periods.
Before final decision
Both future inflation and investment returns are uncertain. Use this as a planning scenario rather than a precise prediction of future purchasing power.