Inflation Adjusted Returns
See the silent killer of wealth. Calculate the "Real" Rate of Return and discover what your future money will actually be able to buy.
Historical average in India is ~6%
Bank Balance in 10 Yrs
₹1,96,715
The absolute number on your bank screen
Real Purchasing Power
₹1,09,845
What that money is ACTUALLY worth in today's terms
"Real" Rate of Return
After subtracting the effects of inflation, your money is actually only growing by this percentage every year:
Over 10 years, inflation effectively eats away ₹86,870 worth of purchasing power from your final balance.
Nominal Balance vs Real Purchasing Power over Time
Frequently Asked Questions
What is Inflation and why does it matter?
Inflation is the rate at which the general price of goods and services is rising. If your money is growing at a slower rate than inflation, you are effectively losing 'purchasing power'. A ₹100 note today buys less than it did 10 years ago.
What is nominal return vs real return?
The 'nominal return' is the raw percentage return advertised on an investment (e.g., a 7% FD). The 'real return' subtracts the impact of inflation. If inflation is 6%, your 7% FD only has a real rate of return of about 0.94%!
Why should I look at 'Real Purchasing Power'?
Looking at purchasing power tells you what your future bank balance will actually be able to buy in today's terms. It prevents you from having a false sense of security when planning for long-term goals like Retirement.