Why is real return more important than nominal return?

Because it tells you if you are actually getting richer. If inflation is higher than your nominal return, you are losing money in terms of what that money can buy in the future.

What is the average inflation rate in India?

For FY 2026-27, the RBI targets a long-term inflation rate of around 4-6%. Investors should aim for returns that comfortably beat this range.

Real vs Nominal Return

Calculate your inflation-adjusted returns to see your actual increase in purchasing power.

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Quick Summary: Real vs Nominal Return

The Real vs Nominal Return calculator identifies your 'true' profit after subtracting the inflation rate. In FY 2026-27, if your FD gives 7% (Nominal) but inflation is 6%, your Real Return is only ~1%, meaning your actual purchasing power barely increased.

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Regulatory Disclaimer

Last verified May 2026

Statutory Disclosure

Nature:Calculator platform and is NOT a SEBI-registered Investment Adviser. All calculations are indicative.

Risk:"Investments in securities market are subject to market risks. Read all related documents carefully before investing."

Consult a SEBI-registered IA or CA for personalised advice.

9 out of 10 traders in F&O incurred net losses (SEBI 2023). Tax estimates based on IT Act 2025. Trezoriq is not liable for financial decisions based on results.