Calculated Results
These results appear above the form after calculation.
| Metric | Value |
|---|
Return Comparison Graph
Calculator Inputs
Use the fields below to estimate after-tax, inflation-adjusted performance. The form uses a three-column layout on large screens, two columns on smaller screens, and one column on mobile.
Example Data Table
This example uses the default values prefilled in the calculator.
| Item | Example Value |
|---|---|
| Opening Balance | $10,000.00 |
| Ending Balance Before Tax | $15,850.00 |
| Total Contributions | $3,000.00 |
| Total Withdrawals | $500.00 |
| Investment Period | 4 years |
| Average Inflation Rate | 3.00% |
| Tax Rate on Gains | 15.00% |
| Annual Fee Rate | 0.75% |
| Annualized Nominal Return After Tax | 5.78% |
| Annualized Real Return After Tax | 2.70% |
| Purchasing Power of Ending Value | $13,636.05 |
Formula Used
1) Weighted capital base
2) Period return before tax
3) Tax on gains
4) Annualized nominal return after tax
5) Annualized real return
6) Purchasing power of ending value
7) Approximate fee drag
This calculator uses a Modified Dietz style weighting approach for cash flows. It provides a practical estimate when contributions and withdrawals happen during the period instead of only at the beginning.
How to Use This Calculator
- Enter the opening and ending portfolio balances for the period you want to measure.
- Add total contributions and withdrawals made during that period.
- Enter the number of years, average inflation rate, and tax rate on gains.
- Add the annual fee rate and compounding frequency to estimate fee drag.
- Use timing fields to reflect when deposits and withdrawals usually happened.
- Optionally enter a benchmark nominal return and target real return for comparison.
- Click Calculate Real Return to show results above the form and below the header.
- Use the CSV and PDF buttons to export your results for review or sharing.
Frequently Asked Questions
1) What is a real return?
Real return measures investment performance after inflation. It shows whether your money gained or lost purchasing power, not just whether the balance grew in nominal terms.
2) Why is real return more useful than nominal return?
Nominal return ignores rising prices. Real return adjusts for inflation, so it better reflects what your money can actually buy after the investment period ends.
3) Why does this calculator ask for contributions and withdrawals?
Cash flows can distort simple return calculations. Including deposits and withdrawals helps estimate performance more fairly when money moves in or out during the period.
4) How are taxes handled here?
The tool applies the selected tax rate only to positive investment gains. It then reduces the ending value by that tax to estimate after-tax performance.
5) What does the purchasing power result mean?
It converts the after-tax ending balance into today’s money using the inflation rate and time period. This helps you see the true economic value of the final balance.
6) Can my nominal return be positive but real return negative?
Yes. That happens when inflation, taxes, and fees together exceed the investment’s nominal growth. Your account may rise, yet your purchasing power still falls.
7) What is the fee drag estimate?
Fee drag estimates how much higher the ending value could have been without the stated annual fee. It is a comparison aid, not a precise audited fee reconstruction.
8) Why compare against a benchmark and target real return?
Benchmark comparison shows whether your portfolio beat a reference return after inflation. A target real return shows whether the result aligns with your long-term wealth goal.