compound interest adjusted for inflation
The nominal balance answers only one question: how much the number grew. It says nothing about how much of that number still buys the same amount of goods years from now, which is exactly the gap this page walks through with actual figures instead of vague warnings.
With low inflation, the annualized real rate lands at 8.52%, close to the 10.69% nominal, so the real balance still grows robustly.
The 5.42% annualized real rate shows that almost half of the nominal growth exists only to offset lost purchasing power, not to actually build wealth.
Here the annualized real rate is just 0.63%: almost the entire 10.69%-a-year nominal return was eaten by inflation over the 20-year horizon.
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.
Because the nominal balance only depends on principal, contribution and monthly rate, not on inflation. Inflation only enters when converting to real value, dividing the balance by the cumulative monthly correction.
It can get very close indeed: with 10% annual inflation, the real rate drops to 0.63% a year, so nearly all of the nominal gain only replaces what inflation already ate away, without actually raising real purchasing power.
Not exactly. The formula used is (1 + nominal rate) / (1 + inflation) − 1, not nominal rate minus inflation; the gap grows larger the higher both rates are, as in the 10%-inflation scenario.
⚠️ Educational simulation with monthly compounding. It does not replace portfolio advice, suitability review or net return calculations with real taxes and fees.
Mathematical simulation with monthly compounding and recurring contributions. It does not include income tax, IOF, administration fees, custody fees or slippage.
Portfolio growth
Breakdown
| Year | Invested | Return this year | Balance | Real value |
|---|---|---|---|---|
| 1 | R$31,000.00 | R$2,961.26 | R$33,961.26 | R$32,344.05 |
| 2 | R$37,000.00 | R$3,919.27 | R$43,880.53 | R$39,800.93 |
| 3 | R$43,000.00 | R$4,979.70 | R$54,860.23 | R$47,390.33 |
| 4 | R$49,000.00 | R$6,153.50 | R$67,013.73 | R$55,132.36 |
| 5 | R$55,000.00 | R$7,452.79 | R$80,466.52 | R$63,047.62 |
| 6 | R$61,000.00 | R$8,890.97 | R$95,357.49 | R$71,157.23 |
| 7 | R$67,000.00 | R$10,482.91 | R$111,840.41 | R$79,482.89 |
| 8 | R$73,000.00 | R$12,245.04 | R$130,085.44 | R$88,046.95 |
| 9 | R$79,000.00 | R$14,195.55 | R$150,280.99 | R$96,872.47 |
| 10 | R$85,000.00 | R$16,354.58 | R$172,635.56 | R$105,983.26 |
| 11 | R$91,000.00 | R$18,744.42 | R$197,379.98 | R$115,403.99 |
| 12 | R$97,000.00 | R$21,389.75 | R$224,769.73 | R$125,160.20 |
| 13 | R$103,000.00 | R$24,317.89 | R$255,087.62 | R$135,278.41 |
| 14 | R$109,000.00 | R$27,559.06 | R$288,646.68 | R$145,786.19 |
| 15 | R$115,000.00 | R$31,146.73 | R$325,793.40 | R$156,712.20 |
| 16 | R$121,000.00 | R$35,117.95 | R$366,911.35 | R$168,086.32 |
| 17 | R$127,000.00 | R$39,513.71 | R$412,425.06 | R$179,939.69 |
| 18 | R$133,000.00 | R$44,379.41 | R$462,804.47 | R$192,304.82 |
| 19 | R$139,000.00 | R$49,765.28 | R$518,569.75 | R$205,215.66 |
| 20 | R$145,000.00 | R$55,726.94 | R$580,296.69 | R$218,707.72 |
Return this year = interest generated within that year on the accumulated balance.
Local browser-based simulation. This is not investment advice.