Turn a headline return into buying-power growth. Enter nominal return, inflation, years, and a starting amount to see real return, future nominal value, and future real value. Free, no sign-up.
Start with $10,000, 8% nominal, 3% inflation, and 20 years.
Both futures can be “true” at once. Nominal is the statement. Real is closer to what those dollars buy.
Real return uses growth factors: (1 + nominal) ÷ (1 + inflation) − 1. Subtracting inflation from nominal is a rough shortcut that slightly overstates the real rate.
Future nominal value compounds the starting amount at the nominal rate. Future real value compounds at the real rate, which is a simple stand-in for today’s buying power.
Buying power of $1 later is 1 ÷ (1 + inflation)^years: what one future dollar is worth in today’s prices at your inflation assumption.
Nominal is the percentage your account shows. Real subtracts inflation so you see growth in buying power.
Many long-term plans use about 2% to 3%. Pick a number you can defend, then keep it consistent across the projection.
Either works if income, expenses, and returns use the same mode. Mixing nominal growth with flat expenses that never inflate usually makes the future look too easy.
Related reading: Nominal vs real, no lecture, You need a model, Early retirement is a date. More free calculators at theflan.app/tools.