Find your real rate of return, after adjusting for inflation.
Uses the Fisher equation, which divides by (1 + inflation) rather than simply subtracting it — more accurate, especially at higher rates.
Real return: (1 + nominal) ÷ (1 + inflation) − 1
Why not just subtract inflation from the nominal return?
Simple subtraction is a rough guess that shows a smaller effect than there really is, especially at higher rates. A more exact method, called the Fisher equation, uses division instead, and gives a more accurate answer.