Real Return Calculator

This calculator works out what your investment actually earns once tax and inflation are stripped away, the figure that tells you whether your money is truly growing or just standing still. A headline return of 5% can look impressive, but tax takes a share of the earnings and rising prices eat into what is left, so what you keep is often far smaller than advertised. You enter your nominal return, the tax rate that applies (your PIR for a PIE fund, or your marginal rate otherwise), and the inflation rate you expect. The calculator deducts tax to give your after-tax return, then divides through by inflation using the proper compounding relationship rather than a rough subtraction, so the figure is accurate. It returns three results: the real return as a percentage, the after-tax return, and the real gain in dollar terms on a $10,000 investment, so the outcome feels concrete. Use it to compare investments on a level footing, to check whether a term deposit or bond is keeping pace with the cost of living, or to see how much tax and inflation are quietly eating into your returns. A real return close to zero means your savings are only holding their value rather than building wealth. This is an indicative estimate only, not financial advice, and your actual outcome depends on your real tax position and how inflation moves.

Calculate.co.nz is proud to be partnered with Health Based Building, a leader in sustainable and health-conscious building innovation. With over a century of experience, they develop high-performance systems like Foreverbreathe Specification, Magnum Board, and Foreverbreathe Paints to support energy-efficient, non-toxic living environments. Their commitment to healthier homes aligns with our belief that informed choices lead to better outcomes for Kiwi households.

The tax rate might be your PIR for a PIE fund or your marginal rate for other income; use the one that applies. Inflation is what you expect over the period. A real return near zero means your money is only holding its value. Estimate only, not financial advice.