Inflation Impact on Investments Calculator
Enter the investment, nominal return, inflation and time frame.
Real value after the period
β
Enter values above
Nominal value
β
Purchasing power lost
β
Real annual return
β
Value needed to keep pace
β
Real gain
β
Worked example
With the default inputs shown below, this calculator returns the following results:
| Input | Value |
|---|---|
| Investment value ($) | 100000 |
| Expected nominal return (%) | 7 |
| Inflation rate (%) | 4 |
| Years | 10 |
| Result | Value |
|---|---|
| Real value after the period | $132,894 |
| Nominal value | $196,715 |
| Purchasing power lost | $63,821 |
| Real annual return | 2.88% |
| Value needed to keep pace | $148,024 |
| Real gain | $32,894 |
Values shown are produced by this page in your browser; change any input to update them.
How to use the Inflation Impact on Investments Calculator
- Investment value ($) β default 100000
- Expected nominal return (%) β default 7
- Inflation rate (%) β default 4
- Years β default 10
- Press Calculate to update the results instantly.
Frequently asked questions
Because the exact real return is (1 + nominal) Γ· (1 + inflation) β 1. Subtracting is a close approximation at low rates but drifts over longer periods.
Historically, long-run real equity returns have been around 5% in developed markets. That is the number worth using for long-term planning, not the nominal figure.
Equities, index-linked bonds, property and, to a degree, commodities. Cash and nominal bonds are the assets most exposed to inflation risk over long horizons.