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Real Return

Your brokerage account shows 10%. But after taxes, after inflation — what did you actually earn in purchasing power? The gap between nominal and real is where most investors lose ground without realising it.

Nominal investment return

Inflation rate

Your effective tax rate on gains

Enter your own rate. This calculator does not compute your tax — that depends on your situation, account type, and jurisdiction.

Real after-tax return

4.66%

Nominal return (gross)10.00%
Tax drag (22% rate applied to nominal gain)−2.20%
After-tax nominal return7.80%
Inflation adjustment (Fisher equation)−3.00% (approx)
Real purchasing-power gain4.66%

Real return = (1 + after-tax nominal%) ÷ (1 + inflation%) − 1, using the Fisher equation (more accurate than simple subtraction at higher rates). Tax rate is user-entered — this calculator applies it as a flat rate on nominal returns. Your actual tax depends on account type (taxable vs. tax-advantaged), holding period, jurisdiction, and individual circumstances. Not tax advice.