Inflation-Adjusted Returns Calculator India — FY 2025-26
See what your investment returns are really worth after accounting for inflation. For India. Uses current FY 2025-26 data.
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Amount you invest today
Common questions — India
What is the Fisher equation for real returns?
Real return = [(1 + nominal return) / (1 + inflation)] - 1. For small numbers, a simpler approximation is: real return ≈ nominal return - inflation. At 10% nominal and 6% inflation, the real return is approximately 3.77% (exact) or ~4% (approximation).
What inflation rate should I use for planning in India?
India's CPI inflation has averaged 4–7% over the past decade. For conservative planning, use 6–7%. For specific goals like education, use education inflation (~8–10% historically). For healthcare goals, healthcare inflation (~10–12%) is more appropriate.
What investments beat inflation consistently in India?
Historically: equity mutual funds (10–14% nominal, real return ~5–8%), real estate in major cities (~7–10% appreciation + rental yield), gold (~7–8% in INR terms). Fixed income like FDs (6.5–7.5%) barely keeps pace with inflation, especially after tax.
Does inflation affect all goods equally?
No. Education and healthcare inflation in India runs at 8–12% — much higher than the general CPI. If you're planning for a child's education, you need to use education-specific inflation, not general CPI, or you'll significantly undershoot your target.
Why does inflation hurt savers but benefit borrowers?
Borrowers repay in future money that is worth less in real terms. A ₹50 lakh home loan taken today will be repaid in future rupees that have less purchasing power. This is why fixed-rate long-term debt (like home loans) tends to become cheaper in real terms over time.