By July 30, 2012 Read More →

Real Rate of Return Calculator

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How much did your investments held in taxable accounts really earn last year? If you don’t adjust for inflation and taxes, you’re not getting the real rate of return.  The stated rate tells you the growth rate of your money, while the real rate tells you how much your purchasing power is growing.

See Also: The Importance of Higher Returns
See Also: Your Investment Profile

This financial planning calculator determines the real rate of return on a taxable  investment after taking taxes and inflation into account, and illustrates what the investment will be worth, in after tax dollars. The growth of investments in tax-advantaged securities (such as municipal bonds) and tax-advantaged accounts such as 401ks and IRAs is sheltered from taxes but not from the effects of inflation.


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