Real Rate of Return Calculator

Real Rate of Return Details

Initial Investment (₹) The amount invested today. Nominal Return Rate (%) Annual return before inflation. Inflation Rate (%) Average yearly inflation. Investment Duration (Years) Total investment period. Tax on Gains (%) Applicable tax on profits. Calculate Real Return

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What Is Real Rate of Return?

Real rate of return measures the actual growth of your investment after adjusting for inflation.

Formula:

(1 + Nominal Return) ÷ (1 + Inflation) − 1

This shows how much purchasing power your investment truly gains.

Why is real return important?
It reflects true purchasing power growth.

Is real return always lower?
Yes, if inflation exists.

Does tax reduce real returns?
Yes, taxes further reduce net gains.