Inflation Adjusted Calculator

See your money's real value.

How did we calculate your results?

Inflation can significantly affect the purchasing power of money over time. By considering inflation alongside the expected return on an investment, you can gain a clearer understanding of the actual value or real return of your investment in future dollars. This tool allows you to calculate the inflation-adjusted value of an investment.

Initial Investment

This is the principal amount or the initial sum of money that you have invested or plan to invest.

Time Horizon

The time horizon is the length of time that you plan to keep your money invested. The longer your investment period, the more likely it is that inflation will impact your investment.

Interest Rate

The interest rate represents the expected annual return on your investment. This is the nominal interest rate and does not take into account the effects of inflation.

Inflation Rate

The inflation rate is the annual rate at which the general level of prices for goods and services is rising. By entering the inflation rate, the tool can adjust the future value of your investment to reflect the decrease in purchasing power caused by inflation.

Results

Once you've entered all the parameters, hit Calculate Inflation Adjusted. The tool will calculate the inflation-adjusted value of your investment using the Fisher equation, which describes the relationship between real and nominal interest rates under inflation. The output displays the inflation-adjusted value of your investment after your specified time horizon. Remember that investing always involves risk, and this tool is just an estimator. It might not reflect your exact situation or some tax implications. It's always a good idea to consult with a qualified professional when making significant financial decisions.

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