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Stock Market vs Inflation — Real Returns Analyzer

If you invested $X in year Y, what is it worth today — and how much was real growth vs just inflation?

Real CAGR
--
Inflation-adjusted annual return
Inflation Tax
--
Total purchasing power lost
Best Real Year
--
Highest inflation-adjusted return
Worst Real Year
--
Lowest inflation-adjusted return
Investment Parameters
investment time machine configuration
Nominal vs Real Portfolio Growth
nominal (green) vs inflation-adjusted (orange)--
The Mattress Test
cost of NOT investing--
asset class comparison
AssetNominalRealSpark
lost decade detector--
Regional Comparison
same investment across regions
Annual Data Table
year-by-year breakdown--
YearIndexMkt ReturnCPIInflationNominal $Real $Real Cumul.
Frequently Asked Questions

> FAQ — Stock Market vs Inflation Analyzer

What data does this tool use?

This tool uses hardcoded historical data for major stock indices (S&P 500, EURO STOXX 50, FTSE 100, Nikkei 225, TSX Composite, ASX 200), consumer price indices, gold prices, bond yields, and real estate approximations from 1970 to 2025. Data is sourced from public financial databases and is directionally accurate.

How are real (inflation-adjusted) returns calculated?

Real return for each year is computed as: Real Return = ((1 + Nominal Return) / (1 + Inflation Rate)) - 1. The real portfolio value strips out inflation so you see actual purchasing power growth rather than nominal dollar amounts.

What is the "inflation tax"?

The inflation tax is the difference between your nominal portfolio value and its real (inflation-adjusted) value. It represents the purchasing power silently eroded by rising prices, even when your account balance grows.

What is the "Mattress Test"?

It compares three scenarios: (1) Keeping cash under a mattress (losing to inflation), (2) Investing in the stock market (nominal value), and (3) The stock market's real purchasing power. It shows the cost of not investing at all.

What is a "Lost Decade"?

A lost decade is a period where the stock market's real (inflation-adjusted) return was negative — meaning investors lost purchasing power. The tool detects these periods and shows how long recovery took.

Is my data stored or sent anywhere?

No. All calculations run entirely in your browser. No investment data is stored, transmitted, or logged. This tool works offline after first load.