compound interest adjusted for inflation

Compound interest with inflation: nominal balance vs real value

Spreadsheets love nominal numbers. Markets do too. The problem is that purchasing power does not care about spreadsheet vanity.

⚠️ Educational simulation with monthly compounding. It does not replace portfolio advice, suitability review or net return calculations with real taxes and fees.

Initial investment

Monthly contribution

Interest rate

% a.m.

Duration

Meses

Annual inflationUsed to estimate the inflation-adjusted purchasing power of the final balance

% a.a.

Compare with benchmark

Result

Final balance

R$580,296.69

Total investedR$145,000.00

Accumulated returnsR$435,296.69

ROI300.2%

Real valueR$218,707.72

Mathematical simulation with monthly compounding and recurring contributions. It does not include income tax, IOF, administration fees, custody fees or slippage.

Portfolio growth

Year	Invested	Balance	Returns	Real value
1	R$31,000.00	R$33,961.26	R$2,961.26	R$32,344.05
2	R$37,000.00	R$43,880.53	R$6,880.53	R$39,800.93
3	R$43,000.00	R$54,860.23	R$11,860.23	R$47,390.33
4	R$49,000.00	R$67,013.73	R$18,013.73	R$55,132.36
5	R$55,000.00	R$80,466.52	R$25,466.52	R$63,047.62
6	R$61,000.00	R$95,357.49	R$34,357.49	R$71,157.23
7	R$67,000.00	R$111,840.41	R$44,840.41	R$79,482.89
8	R$73,000.00	R$130,085.44	R$57,085.44	R$88,046.95
9	R$79,000.00	R$150,280.99	R$71,280.99	R$96,872.47
10	R$85,000.00	R$172,635.56	R$87,635.56	R$105,983.26
11	R$91,000.00	R$197,379.98	R$106,379.98	R$115,403.99
12	R$97,000.00	R$224,769.73	R$127,769.73	R$125,160.20
13	R$103,000.00	R$255,087.62	R$152,087.62	R$135,278.41
14	R$109,000.00	R$288,646.68	R$179,646.68	R$145,786.19
15	R$115,000.00	R$325,793.40	R$210,793.40	R$156,712.20
16	R$121,000.00	R$366,911.35	R$245,911.35	R$168,086.32
17	R$127,000.00	R$412,425.06	R$285,425.06	R$179,939.69
18	R$133,000.00	R$462,804.47	R$329,804.47	R$192,304.82
19	R$139,000.00	R$518,569.75	R$379,569.75	R$205,215.66
20	R$145,000.00	R$580,296.69	R$435,296.69	R$218,707.72

Local browser-based simulation. This is not investment advice.

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Why real value matters

Nominal balance shows how the number grows; real value tries to show how much it keeps buying.
The longer the horizon, the greater the risk of overly optimistic reading when inflation is ignored.

Quick reads

Large nominal balance

Input: Prazo longo + inflação de 5% a.a.
Expected output: Valor real cresce menos do que o saldo parece sugerir

A good antidote to simulation euphoria.

Moderate inflation

Input: Horizonte médio
Expected output: A diferença ainda existe e merece ser vista

Useful even outside extreme scenarios.

Full tool FAQ

Does the calculator model monthly contributions with compound growth?

Yes. The tool compounds the balance month by month and adds the recurring contribution every period, which makes it much more useful for real accumulation planning than a simple lump-sum-only model.

What is the benefit of switching between monthly and annual rate input?

Why compare the scenario against a benchmark?

What does real value mean here?

If I choose 18 months, does the new version keep the exact duration?

Does this calculator already deduct investment taxes?

Can I use it for pensions, ETFs or emergency fund projections?

Is a compound-interest simulation a forecast?

Frequently asked questions

Is real value an official inflation forecast?

No. It is only an estimate based on the annual inflation assumption you choose.

Can I ignore inflation over short horizons?

You can simplify that way, but this page exists to show when that shortcut starts costing understanding.