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SBI SecuritiesAn SBI Group Company

Real Return Calculator

Calculate your true returns after adjusting for inflation and taxes. See what your money is actually worth.

Investment Parameters

₹10,00,000
₹1,00,000₹1,00,00,000
12%
1%25%
6%
2%12%
10 Years
1 Year30 Years

LTCG: 12.5% above ₹1.25L exemption

Investment Comparison

InvestmentNominalPost-TaxReal ReturnReal Value
Savings Account (4%)4%3.50%-2.36%7.93L
FD (7%)7%6.13%+0.12%10.31L
Debt Fund (8%)8%7.00%+0.94%11.25L
Equity (12%)12%10.50%+4.25%15.87L
Aggressive (15%)15%13.13%+6.72%20.46L

Year-wise Projection

YearNominal ValuePost-TaxReal ValueInflation Impact
111.20L11.05L10.42L-₹0.63L
314.05L13.54L11.37L-₹2.17L
517.62L16.67L12.46L-₹4.21L
722.11L20.59L13.70L-₹6.90L
927.73L25.51L15.10L-₹10.41L
1031.06L28.43L15.87L-₹12.55L

Real Returns Analysis

Real Return (After Tax + Inflation)

+4.25%

Nominal Return

12%

Post-Tax Return

10.50%

Break-even Return6.86%

Minimum return needed to beat inflation + tax

Future Value Breakdown

Nominal Future Value31.06L
Tax Paid-₹2.63L
Inflation Impact-₹12.55L
Real Future Value15.87L

Actual purchasing power in today's terms

Key Insights

  • 10L today will have the purchasing power of ₹15.87L in 10 years
  • You need 6.86% returns just to maintain purchasing power
  • Inflation erodes ₹12.55L over 10 years

Beat Inflation Strategies

Equity Investment

Historical 12-15% returns, best for long term

Tax-Efficient Investing

Use LTCG benefits, ELSS for tax savings

Real Assets

Real estate, gold hedge against inflation

Regular Review

Adjust portfolio for inflation environment