Studio · Savings

Inflation & real return

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How inflation erodes a nominal return — see today’s-money value over time.

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Amount£50,000

Nominal return4%

Inflation3%

Years10 yrs

Real value in 10 years

Normal

£55,072

In today’s money, from £50,000

Real value (today’s money) by year — fan over ±1pp inflation

Nominal value

£74,012

Real value (today’s money)

£55,072

Real return p.a.

1.0%

Purchasing-power change

10.1%

A 4.0% nominal return against 3.0% inflation is a real return of 1.0% per year.
Over 10 years, £50,000 grows to £74,012 nominally — but only £55,072 in today’s purchasing power.

Deterministic scenario analysis for research and education only — not financial, investment, tax, legal or mortgage advice. Outputs are prompts for further research, not recommendations.