Calculate the actual purchasing power gain of your investment after accounting for inflation.
Enter nominal return rate.
Enter expected inflation rate.
View the real rate of return.
12% return with 6% inflation gives a real return of 5.66%.
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Inflation reduces the future utility of money. While your nominal corpus grows to ₹3,10,585, the actual "purchasing power" is restricted to ₹1,73,429.
This model uses the Fisher Equation to calculate the real rate of return. It is essential for determining if an investment actually adds wealth or just keeps pace with rising costs.