Calculate the real purchasing power of your returns after CPI inflation. See the difference between what your account shows and what you can actually buy.
Calculate the real purchasing power of your returns after CPI inflation. See the difference between what your account shows and what you can actually buy.
India CPI avg ~5-6%
Nominal Value
₹54,73,566
What the account shows
Real Value (today's ₹)
₹22,83,928
Actual purchasing power
Real Return p.a.
5.66%
Fisher: (12.00% − 6.00%)
Purchasing Power Lost
₹31,89,638
Inflation's hidden tax
Year-by-Year Comparison
| Year | Nominal Value | Real Value (today's ₹) | Price Level | Real Return |
|---|---|---|---|---|
| Year 1 | ₹11,20,000 | ₹10,56,604 | ₹10,60,000 | 5.66% |
| Year 2 | ₹12,54,400 | ₹11,16,412 | ₹11,23,600 | 11.64% |
| Year 4 | ₹15,73,519 | ₹12,46,375 | ₹12,62,477 | 24.64% |
| Year 6 | ₹19,73,823 | ₹13,91,467 | ₹14,18,519 | 39.15% |
| Year 8 | ₹24,75,963 | ₹15,53,450 | ₹15,93,848 | 55.34% |
| Year 10 | ₹31,05,848 | ₹17,34,289 | ₹17,90,848 | 73.43% |
| Year 12 | ₹38,95,976 | ₹19,36,181 | ₹20,12,196 | 93.62% |
| Year 14 | ₹48,87,112 | ₹21,61,574 | ₹22,60,904 | 116.16% |
| Year 15 | ₹54,73,566 | ₹22,83,928 | ₹23,96,558 | 128.39% |
DETAILS
This section explains what the calculator does, what goes into the result, and how to interpret the output so you can apply it confidently.
This calculator turns a few key inputs into a clear output you can act on — a number that traders and investors commonly use for planning and decision-making.
Use it to compare scenarios quickly and to understand the trade-offs behind the final result.
Treat the output as a planning number. Small changes in inputs (time, rate, price, quantity, risk, or cashflows) can change the outcome meaningfully — so keep assumptions realistic.
If the tool returns multiple outputs, focus on the ones that drive decisions (e.g., net result, breakeven, or risk-adjusted value), not just the biggest number.
Investment ₹10,00,000, Years 15, Nominal 12%, Inflation 6%
Graphical view
Investment ₹5,00,000, Years 10, Nominal 7%, Inflation 6%
Graphical view
When nominal return is close to inflation, real wealth grows very slowly.
HOW IT WORKS
Input the nominal investment return rate and India CPI inflation rate.
Enter the amount and time horizon for a complete projection.
Get nominal value, real value in today's rupees, real CAGR, and year-by-year comparison table.
FAQ
Nominal return is the % shown in your account. Real return is what remains after adjusting for inflation — i.e., the actual increase in purchasing power. At 7% nominal with 6% inflation, real return is only 0.94%.
Real Return = (1 + Nominal Return) / (1 + Inflation Rate) − 1. A simpler approximation: Real ≈ Nominal − Inflation. The exact formula matters more when both rates are large.
India's CPI inflation has averaged 5–6% over the last decade (2014–2024). RBI's target is 4% (±2%). Food inflation, which weighs heavily in India's CPI basket, can spike to 8–12% in bad years.
Historically, only equity (Nifty 50 at ~12% CAGR) has consistently beaten inflation with a real return of ~5–6%. FDs, PPF, and savings accounts barely keep pace with or fall behind inflation over 10+ year periods.
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