Lumpsum Investment Calculator
Future value and annualised return on a one-time investment, with inflation-adjusted worth.
Formula
FV = P × (1 + r)ⁿ
Tips
- The inflation-adjusted figure is the honest one. At 6% inflation, money loses roughly half its purchasing power every twelve years.
- A 12% nominal return with 6% inflation is a real return of about 5.7%, not 6% — the two rates divide rather than subtract.
- Nothing here accounts for exit load, expense ratio or tax, all of which reduce what you actually receive.
Frequently asked questions
Why is the real return not simply return minus inflation?
Because both compound. The exact relationship is (1 + nominal) ÷ (1 + inflation) − 1. Subtracting is a reasonable approximation at low rates and increasingly wrong as rates rise.