Book 5 · Savings & Compound Interest

Real vs Nominal Return

Growth only counts if it outruns prices. Take inflation out of a return to see what your money actually gains in what it can buy.

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Enter a return and an inflation rate, then press Calculate.
From the book — Chapter 7. The quick rule is return − inflation, and that’s close enough most days. The exact version divides them out: real = (1 + return) ÷ (1 + inflation) − 1. Either way, the lesson is the same — a 5% return with 3% inflation is really about 2% of new buying power, and a “safe” rate below inflation quietly loses ground.

Illustrative figures, not a forecast or investment advice. Everything stays in your browser.