Real Return Calculator
Your return after inflation, tax and fees.
Enter your values
ⓘ Live results
Results
- Real return after everything
- 3.19%
- After fees
- 7.4%
- After fees and tax
- 6.29%
- Naive subtraction estimate
- 3.29%
- Real value in 10 years
- $68,473.39
- Nominal value in 10 years
- $107,946.25
Quick answer
Real return = (1 + nominal) ÷ (1 + inflation) − 1, applied after fees and tax — the simple subtraction overstates the result.
Real = (1 + nominal) ÷ (1 + inflation) − 1
How to use the Real Return Calculator
- 1Enter the headline return your investment quotes.
- 2Enter inflation, total fees and the tax rate you pay on gains.
- 3Compare the real value with the nominal value over your holding period.
Worked example
Using the values the calculator loads with:
Inputs
- Nominal annual return8 %
- Inflation rate3 %
- Fund and platform fees0.6 %
- Tax on returns15 %
- Amount invested50000 $
- Years held10
Results
- Real return after everything3.19%
- After fees7.4%
- After fees and tax6.29%
- Naive subtraction estimate3.29%
- Real value in 10 years$68,473.39
- Nominal value in 10 years$107,946.25
Frequently asked questions
Why not just subtract inflation?
Subtraction is a good approximation at low rates but overstates the real return; the ratio formula is exact and diverges as rates rise.
Do fees really matter?
Enormously. A 1% annual fee on a 7% return removes roughly a quarter of your real gains over 30 years.
About this calculator
- Built and reviewed by James Whitfield · How we build and test calculators
- Report an error
Results are estimates for general information. For medical, legal, structural or financial decisions, confirm with a qualified professional.