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% |
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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