How Inflation Impacts Your Real Investment Compound Gains
The silent destroyer of returns: why 7% nominal becomes 4% real — and what that does to a 30-year retirement plan.
Read article →Inflation Impact Calculator
See how purchasing power erodes over time.
Understanding This Calculator
Inflation silently erodes purchasing power. Even at 3% annual inflation, $100,000 today buys only about $55,000 worth of goods in 20 years.
Core Formula
Real Value = Nominal / (1 + inflation)^years
What is the average US inflation rate?
Historically, US inflation averages around 3% per year, though it varies significantly across decades.
How do I hedge against inflation?
Assets like stocks, real estate, and TIPS have historically provided inflation protection over long horizons.
* All calculations above are theoretical estimates. Actual returns vary based on market performance, fees, taxes, inflation, and economic factors. This tool is for educational purposes only — not financial advice.
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