Inflation-Adjusted Savings Calculator
See what your savings will really buy: nominal growth versus purchasing power, and the real return after inflation.
- Free
- No signup
- Private browser calculation
Purchasing power in today's money
₹7,10,676
Nominal balance ₹10,51,974 · purchasing-power loss ₹3,41,298.
- Nominal future value
- ₹10,51,974
- Inflation-adjusted value
- ₹7,10,676
- Total contributions
- ₹7,00,000
- Nominal interest
- ₹3,51,974
- Real annual return
- 2.88%
- Purchasing-power loss
- ₹3,41,298
Your balance may increase while its purchasing power grows more slowly or declines.
The estimated real annual return is 2.88% — (1 + 7%) ÷ (1 + 4%) − 1.
After estimated inflation, the future balance of ₹10,51,974 buys what ₹7,10,676 buys today.
These estimates are for general planning only and are not financial, tax, investment or banking advice. Actual interest, fees, taxes, inflation and product terms may differ.
Loading charts…
Yearly schedule (nominal and today's money)
| Year | Contributions | Interest | Balance | Today’s money |
|---|---|---|---|---|
| Year 1 | ₹60,000.00 | ₹8,901.49 | ₹1,68,901.49 | ₹1,62,405.27 |
| Year 2 | ₹60,000.00 | ₹13,724.59 | ₹2,42,626.08 | ₹2,24,321.45 |
| Year 3 | ₹60,000.00 | ₹18,885.31 | ₹3,21,511.39 | ₹2,85,822.45 |
| Year 4 | ₹60,000.00 | ₹24,407.28 | ₹4,05,918.67 | ₹3,46,980.98 |
| Year 5 | ₹60,000.00 | ₹30,315.79 | ₹4,96,234.46 | ₹4,07,868.56 |
| Year 6 | ₹60,000.00 | ₹36,637.90 | ₹5,92,872.36 | ₹4,68,555.64 |
| Year 7 | ₹60,000.00 | ₹43,402.55 | ₹6,96,274.91 | ₹5,29,111.71 |
| Year 8 | ₹60,000.00 | ₹50,640.73 | ₹8,06,915.64 | ₹5,89,605.35 |
| Year 9 | ₹60,000.00 | ₹58,385.58 | ₹9,25,301.22 | ₹6,50,104.36 |
| Year 10 | ₹60,000.00 | ₹66,672.57 | ₹10,51,973.79 | ₹7,10,675.80 |
Assumptions and conventions
- Real rate = (1 + nominal) ÷ (1 + inflation) − 1 (exact Fisher relation); real values discount the balance at (1 + inflation) per year.
- Annual compounding is assumed for this comparison; use the Compound Interest Calculator for other frequencies.
- Inflation is constant over the duration — real inflation varies.
- Values are calculated at full precision and rounded for display; columns may differ from totals by a small rounding amount.
What this calculator does
Your balance may increase while its purchasing power grows more slowly or declines. This tool projects savings twice — in nominal money and in today's money — and reports the real annual return using the exact Fisher relation, not the rough subtraction of inflation from the rate.
When inflation exceeds the return, the real value falls even as the balance rises; the calculator flags this rather than hiding it.
Formula
Real rate = (1 + nominal rate) ÷ (1 + inflation rate) − 1. Real future value = nominal future value ÷ (1 + inflation)^years. Note that 7% return with 4% inflation is a 2.88% real return, not 3%.
Assumptions
- Inflation and the return are constant assumptions over the duration; real inflation varies.
- Annual compounding and end-of-period contributions are used here — for other options, use the Compound Interest Calculator with inflation enabled.
Content and formulas reviewed on 2026-08-06. See our methodology for how calculations are built and tested.
Worked example
1,00,000 at a 7% return with 4% inflation for 10 years grows to 1,96,715 nominally — but that buys only what 1,32,894 buys today. The 63,821 difference is the purchasing power inflation removed.
Frequently asked questions
Why is my real return not simply return minus inflation?
Because both compound. The exact real rate is (1+r)/(1+π) − 1: at 7% and 4% that is 2.88%, not 3%. Small at first glance, meaningful over decades.
Can the real value of my savings fall while the balance grows?
Yes — whenever inflation exceeds your return. The balance line rises while the purchasing-power line falls; this calculator shows both.
What inflation rate should I use?
A long-run assumption for your country — many planners use something near the central bank's target. Higher personal inflation (education, healthcare) may justify a higher figure for specific goals.
Are contributions inflation-adjusted too?
Contributions are entered in today's money and held constant. If you expect to raise them with inflation, model that with the annual-increase option in the Compound Interest Calculator.
Does negative inflation work?
Yes, within the supported range — deflation raises the real value above the nominal one.
These estimates are for general information only and are not financial, tax, legal, or investment advice. Rates, fees, and lending rules vary by lender and country. Actual costs and outcomes may differ from the projections shown.