Real Return Calculator (After Fees, Tax and Inflation)
See what your investments are really worth in today's money after fund fees, tax on gains and inflation.
Why nominal returns mislead
An investment calculator that shows a big end number ignores three things that shrink it: fund fees, tax on the gains and rising prices. This calculator takes them off in order, so you see what the money could buy in today's terms.
How it works
Each month your balance grows by the return minus the fee, and your contribution is added. At the end, tax is charged on the gain only (balance minus what you paid in). The result is then divided by cumulative inflation to give today's money. The real growth row shows what you gained above what you paid in.
What to do with it
Try a 0.1% index fund fee against a 1.5% fee to see the cost of fees. Try different inflation rates to see how fragile long-term plans are. Tax rules differ by country and account type, so set the tax rate to match your situation, or 0 for a tax-free account.
Worked example
Last reviewed November 2026. Formulas are standard and shown in the sections above; results are estimates.
Tips and common mistakes
- Compare 0.1% and 1% fees to see their long-term cost.
- Use 0% tax for tax-free accounts such as a Roth IRA or ISA.
- Plan with real figures: what the money buys, not the headline number.
Learn more
Frequently asked questions
What is a real return?
The growth after taking out inflation. It shows how much your buying power grows.
How much do fees matter?
A 1% fee can cut the final balance by a fifth or more over 30 years. The result row shows the cost.
Is tax charged each year?
This model charges tax once at the end on the gain. Accounts that tax yearly can differ.
Which inflation rate should I use?
Long-term averages are often 2% to 3%. Test higher and lower.
Does it include currency changes?
No. Everything is in one currency.
Money guides for this topic
All guides →Capital Gains Tax Explained: Short vs Long Term
How selling an investment is taxed, why holding for over a year can cut the rate, and how to estimate the bill before you sell.
Read guide →Lump Sum vs Dollar-Cost Averaging
Should you invest a windfall all at once or spread it out? What the history and simulations show, and how to choose.
Read guide →Real Return: What Fees, Tax and Inflation Take
Why a 7% headline return can feel much smaller, and how to measure growth in today's money after costs.
Read guide →Related calculators
Inflation Calculator
See what today's money could buy in the future, and how inflation reduces your purchasing power.
Open calculator →ROI Calculator
Work out your return on investment as a percentage and as an annual rate.
Open calculator →Dividend Income Calculator
Estimate dividend income over time as the payout grows each year.
Open calculator →Results are estimates and not financial advice.