Real money

Inflation-Adjusted Returns

A bigger number isn't always more money. See what your future balance would actually buy — and how investing compares with leaving cash in savings.

$
$
yrs
% a year
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Everything in today's moneyYour monthly amount is assumed to rise with inflation, so every figure here is what it would buy at today's prices.
Subtract fund feesVWRA TER 0.14% a year
Currency

In today's money

4.25% real return
$135,202

What your VWRA balance after 20 years would buy today. On the statement it would read $221,544.

You put in (today's money)
$82,000
Real growth
$53,202

Invested vs savings account

Invested
$135,202
4.25% a year after inflation
Savings at 3%
$86,627
0.49% a year after inflation

Prices rising 2.5% a year means $1,639 in 20 years buys what $1,000 buys today — or, $1,000 kept as cash would buy only $610 worth.

Buying power over time

In today's money · hover or tap for any year
Invested balanceYour contributionsSavings at 3%
$0$40k$80k$120k$160kNowYr 2Yr 4Yr 6Yr 8Yr 10Yr 12Yr 14Yr 16Yr 18Yr 20

Real return = (1 + return − fee) ÷ (1 + inflation) − 1. Constant rates for illustration, not a forecast.

If inflation runs higher or lower

Same plan · 20 years · in today's money
InflationInvestedReal returnSavings at 3%Savings vs paid in
1%$163,9505.8%$102,890+$20,890
2%$144,0034.76%$91,627+$9,627
2.5% (yours)$135,2024.25%$86,627+$4,627
3%$127,0903.75%$82,000Breaks even
4%$112,6982.75%$73,740−$8,260
5%$100,4071.77%$66,625−$15,375
7%$80,811−0.13%$55,135−$26,865

Why inflation matters

Investing $10,000 plus $300 a month for 20 years, with prices rising 2.5% a year, here's what each choice would buy in today's money:

  • Invested at 7%: about $137,492.
  • Savings at 3%: about $86,627 — only a little more than you put in.
  • Cash at 0%: about $62,981 — less buying power than you started with.

You'd put in $82,000 in each case. Inflation quietly decides which of those is growth and which is a loss.

How this calculator works

real return = (1 + return − fee) ÷ (1 + inflation) − 1

The balance grows each month at the real return, and your monthly amount is held constant in today's money (so it rises with prices in reality). To see the figure your statement would show, multiply by the total price rise — the calculator shows both.

Planning with fixed contributions instead? The ETF Investment Calculator has a “today's money” switch, and the FIRE Calculator uses the same real-return approach.

Frequently asked questions

What is an inflation-adjusted (real) return?

Your return after removing the effect of rising prices. If investments grow 7% in a year and prices rise 2.5%, your buying power grows by about 4.4%. Precisely: (1.07 ÷ 1.025) − 1.

What does 'in today's money' mean?

It expresses a future amount by what it would buy at today's prices. $100,000 in 20 years, with 2.5% inflation, buys roughly what $61,000 buys today.

Is keeping money in a savings account safe from inflation?

Only if its interest rate beats inflation. When savings pay less than prices rise, the balance grows on paper but buys less each year. The table above shows where that line falls for your rate.

Why assume my monthly amount rises with inflation?

It keeps everything comparable. If your salary and savings rise roughly with prices, a constant amount in today's money is a realistic plan — and every figure stays in the same, understandable units.

What inflation rate should I use?

Many central banks target around 2% a year, but actual inflation varies by country and period. Try a higher rate too — the table shows how sensitive your plan is.