Returns After Tax & Inflation
Nominal returns can look impressive, but what really matters is how much your investment grows after tax and inflation.
What this calculator shows
This calculator shows what your investment returns are actually worth after accounting for tax and inflation. Nominal returns can look attractive, but they do not reflect real purchasing power.
How real returns are calculated
The calculator first reduces the nominal return by the applicable tax. It then adjusts the post-tax return for inflation to estimate the real growth rate.
Real Return ≈ ((1 + Post-Tax Return) ÷ (1 + Inflation)) − 1
Why real returns matter
Taxes and inflation silently erode wealth. Understanding real returns helps you set realistic expectations and compare investment options meaningfully.
Better financial decisions
By focusing on real returns instead of headline numbers, this calculator helps you make decisions that truly protect and grow your purchasing power.