Return After Tax Calculator
Don't be fooled by the advertised interest rate. Calculate your Real Return.
Most investors look at the Gross Return (e.g., FD interest of 7%). Smart investors look at the Real Return—which is what is left in your pocket after the government takes its share (Tax) and the market raises prices (Inflation). Use this tool to check if your investments are actually growing your wealth or if you are losing purchasing power.
ℹ️ Rate promised by the bank or fund.
ℹ️ Average price rise (Standard is 6%).
Real Purchasing Power Growth
0%
Analysis
Even though the bank gives you 7%, after paying 30% tax and adjusting for 6% inflation, your real growth is only 0%.
To build wealth, your After-Tax return must be higher than Inflation.
The Silent Killers: Tax & Inflation
If your money grows by 7% but inflation grows by 6%, you haven't made 7% profit. You've barely broken even. Add taxes to the mix, and you might actually be poorer at the end of the year.
📉 Reality Check: FD vs Inflation
| Component | Value | Meaning |
|---|---|---|
| Bank Interest Rate | 7.00% | What the bank promises. |
| Tax (30% Slab) | - 2.10% | Govt takes this share. |
| Inflation | - 6.00% | Cost of living increase. |
| Real Return | - 1.10% | You LOST purchasing power! |
Note on Tax Regimes (FY 2025-26)
The tax you pay on investment interest (like FDs) depends on your total income slab. Whether you choose the Old Regime or New Regime affects your final tax slab rate (e.g., 20% vs 30%).
Disclaimer: This calculator provides estimates based on the tax rate and inflation rate you enter. Real-world returns may vary due to surcharges, cess, and changing economic conditions.
Frequently Asked Questions
What is Real Rate of Return?▼
The real rate of return reflects your actual gain after adjusting for inflation and taxes. Nominal returns can be misleading without this adjustment.
How are mutual fund returns taxed?▼
Taxation depends on the type of fund and holding period. Equity and debt funds follow different tax rules as per income tax laws.