Inflation, Real Return & Future Value
The three calculators every long-term saver should run before assuming nominal returns are real.
These tools answer the questions most calculators ignore: what will today's ₹1 lakh actually buy in 20 years? Is my 8% FD return really beating inflation? How much do I need today to be a crorepati at 60? Each one applies the Fisher equation or compound interest formula correctly, including the inflation adjustment.
The Real Rate of Return calculator is the one most retail investors skip — it shows that an 8% FD at 6% inflation gives you only 1.89% real return, not 2%. Over 20 years, that 0.11% gap compounds to a 6% wealth difference.
Why these matter for goal planning
When you set a future goal — say ₹1 crore for retirement in 20 years — the goal needs to be inflation-adjusted. ₹1 crore today is roughly ₹3.2 crore in 20 years at 6% inflation. Plan against the inflated number, not the nominal one, otherwise the corpus you build will buy far less than you imagined.
Use Inflation Calculator to inflate your target, Real Rate to find your assumed fund's real return, and Future Value to project today's investments into the future in both nominal and real terms.