Inflation-adjusted savings calculator
Most savings calculators lie about your target. They tell you to save for $1M in 30 years — but $1M then only buys $400K of today's stuff. This calculator solves for the monthly investment that preserves real buying power.
"Save $500/mo at 8% for 30 years → $750K" is true in nominal dollars. In real terms (today's buying power), that's worth ~$310K. If your goal is "I want $1M of today's spending power in 30 years," you actually need ~$2.4M nominal. The fix: enter your goal in today's dollars; the calculator does the inflation math for you.
The rule of compounding inflation
Inflation compounds like investment returns — but works against you. At 3% inflation: prices double every ~24 years (rule of 72: 72÷3). So a $100K lifestyle today costs $200K in 24 years. The most underrated effect: this happens silently, every year, regardless of what you do.
Common goals in real vs nominal terms (2026)
| Goal in today's $ | Years | Nominal $ needed (3% infl) | Monthly @ 8% return |
|---|---|---|---|
| $500K | 10 | $672K | $3,640 |
| $500K | 20 | $903K | $1,560 |
| $1M | 20 | $1.81M | $3,120 |
| $1M | 30 | $2.43M | $1,690 |
| $2M | 30 | $4.85M | $3,380 |
| $2M | 40 | $6.52M | $1,830 |
Starting balance assumed $0. Each additional $10K already invested reduces required monthly by roughly the cell's amount divided by 10.
Why "real return" is the only number that matters long-term
Real return = (1 + nominal) ÷ (1 + inflation) − 1. For a stock portfolio returning 10% nominal in a 3% inflation environment: real return ≈ 6.8%. That's what your money actually grows in buying power. If a financial advisor projects 10% returns without subtracting inflation, the projection is misleading.
S&P 500 long-run real return is approximately 6.5-7% per year (geometric mean, 1928-2023). That's after inflation. The 10% nominal you sometimes see in headlines includes ~3% of inflation that wasn't actually buying power growth.
Inflation-hedge assets
- Stocks (broad index): historically the strongest long-run inflation hedge. Companies pass costs through to prices. 6-7% real return.
- TIPS: principal adjusts with CPI semi-annually. Guaranteed real return = current TIPS yield. Currently ~1.5-2% real (lower in low-inflation years).
- I-Bonds: rate resets every 6 months based on CPI. Capped at $10K/yr/person purchase. Best for emergency-fund portion.
- Real estate: rents and home values typically track inflation over decades. Leveraged real estate (mortgage) is a strong inflation hedge — you pay back the loan in cheaper dollars.
- Cash / savings: WORST inflation hedge. HYSA at 4% in a 3% inflation environment is only 1% real return.
Related calculators
- Inflation calculator — what does $X today equal in Y years
- Compound interest calculator — nominal growth projection
- FIRE calculator — uses 7% real return for FIRE number math
- Cost of waiting to invest — what each year of delay actually costs