Inflation Adjusted Return Calculator: Measure Real Investment Performance
Our calculator converts a stock’s price change, dividends and CPI data into real returns, showing true purchasing-power growth. U.S. equities delivered an average 6.8 % real annual return from 1926-2022 (Ibbotson SBBI Yearbook, 2023).
Inflation Adjusted Return Calculator
Results
Stock Return
Inflation Rate
Inflation Adjusted Return
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How to use the tool
Beginning Price – type what you paid per share. Example A: $12 300 Example B: $6 750
Ending Price – enter today’s market price. Example A: $15 400 Example B: $9 020
Dividends – add total cash distributions received. Example A: $480 Example B: $275
Beginning CPI level – copy the CPI index for the purchase month. Example A: 221.6 Example B: 258.4
Ending CPI level – paste the most recent CPI figure. Example A: 243.9 Example B: 280.7
Press Calculate to see Nominal Return, Inflation Rate and Inflation-Adjusted Return.
Formulas used
All percentages are expressed in decimal form during calculation.
The U.S. CPI is published monthly by the Bureau of Labor Statistics (BLS CPI FAQ, 2023).
Long-term U.S. equity nominal return averages 10.2 % per year (Morningstar Market Returns, 2023).
Average U.S. inflation since 1913 stands at 3.2 % annually (BLS Historical CPI, 2023).
A real return above 0 % means the investment beats inflation (CFA Institute Foundations, 2020).
“The CPI measures the average change over time in the prices paid by urban consumers for a market basket of goods and services” (BLS CPI Guide, 2023).
FAQ
What is a nominal return?
A nominal return is the percentage gain or loss calculated from price appreciation plus dividends, before adjusting for inflation (CFA Institute Foundations, 2020).
Why subtract inflation?
Inflation erodes purchasing power; adjusting returns shows the real increase in what your money can buy (Federal Reserve Consumer Guide, 2022).
Where can I find CPI numbers?
The Bureau of Labor Statistics posts monthly CPI values on bls.gov; data go back to 1913 (BLS CPI Database, 2023).
Does the tool account for taxes or fees?
No. It isolates market return and inflation; you must subtract trading costs and taxes separately for after-tax real returns (IRS Publication 550, 2023).
Can I use the calculator for bonds?
Yes, substitute bond purchase price, redemption value and coupon income—the formulas remain valid for fixed-income assets (Investopedia Bond Returns, 2023).
How often should I recalculate?
Update whenever you receive new price, dividend or CPI data; many investors review quarterly to match earnings reports (Morningstar Investing Classroom, 2023).
Important Disclaimer
The calculations, results, and content provided by our tools are not guaranteed to be accurate, complete, or reliable. Users are responsible for verifying and interpreting the results. Our content and tools may contain errors, biases, or inconsistencies. We reserve the right to save inputs and outputs from our tools for the purposes of error debugging, bias identification, and performance improvement. External companies providing AI models used in our tools may also save and process data in accordance with their own policies. By using our tools, you consent to this data collection and processing. We reserve the right to limit the usage of our tools based on current usability factors. By using our tools, you acknowledge that you have read, understood, and agreed to this disclaimer. You accept the inherent risks and limitations associated with the use of our tools and services.
