Click calculate to see projections...
Real vs. Nominal Investment Growth
Standard compounding interest models often look impressive because they project nominal balances. This calculator calculates real future purchasing power by adjusting your projected returns against an expected annual rate of inflation.
The Fisher Equation Adjustment:
Real Rate of Return = ((1 + Nominal Rate) / (1 + Inflation Rate)) - 1
Adjusting your projections for inflation provides a more accurate view of what your savings will actually be worth in the future, helping you set more realistic long-term financial goals.
Monthly contributions are compounded alongside the principal at the end of each monthly cycle over your chosen time horizon.