Savings and inflation
Real return calculator
Take inflation off a return to see how much your buying power really grew.
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This shows example figures. Change them to work out your own.
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Real return each year
3.7%
- Return less inflation (the simple gap)
- 4%
- Value at the end, before inflation
- PKR 176,234.17
- Value at the end, in today's money
- PKR 119,942.01
Year by year
| Year | Value | In today's money |
|---|---|---|
| 1 | PKR 112,000 | PKR 103,703.70 |
| 2 | PKR 125,440 | PKR 107,544.58 |
| 3 | PKR 140,492.80 | PKR 111,527.71 |
| 4 | PKR 157,351.94 | PKR 115,658.37 |
| 5 | PKR 176,234.17 | PKR 119,942.01 |
How it is calculated
Real return = (1 + return) / (1 + inflation) - 1
This is not the same as return - inflation. The simple gap is shown beside it so you can see the difference.
Value at the end = amount x (1 + return)^years
In today's money = amount x ((1 + return) / (1 + inflation))^years
Each result is rounded once. A fall keeps its minus sign.
Assumptions
- A return of 12% and inflation of 8%, the same every year.
- No fees, charges or tax are taken off the return.
- These are your own figures, not forecasts. Real figures change from year to year.
Results are worked out from the figures you enter and are only estimates. They are not advice.
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