Inflation-Adjusted Return Calculator
A million dollars in 30 years won't buy what a million buys today. See what your future money is really worth.
Future balance (nominal)–
In today's dollars–
Real return–
Real vs. nominal return
Real return = (1 + nominal) ÷ (1 + inflation) − 1
An 8% return with 3% inflation gives a real return of 4.85%, not 5%. The gap looks small but adds up over decades. US inflation has averaged about 3% a year since 1926, though it ran much hotter in the 1970s and in 2021–2023.
Common questions
What inflation rate should I use?
The Federal Reserve targets 2%. The long-run US average is about 3%. For retirement planning, 2.5–3% is a reasonable middle ground.