Inflation-Proof Portfolio Calculator
Enter the portfolio, spending, inflation and the real return you want.
Required nominal return
β
Enter values above
Portfolio for perpetuity
β
Years covered at that return
β
Real withdrawal rate
β
Shortfall vs perpetuity target
β
Spending in final year
β
Worked example
With the default inputs shown below, this calculator returns the following results:
| Input | Value |
|---|---|
| Portfolio value ($) | 500000 |
| Annual spending ($) | 30000 |
| Inflation rate (%) | 3 |
| Desired real return (%) | 2 |
| Years | 25 |
| Result | Value |
|---|---|
| Required nominal return | 5.06% |
| Portfolio for perpetuity | $1,500,000 |
| Years covered at that return | 22 years |
| Real withdrawal rate | 6.00% |
| Shortfall vs perpetuity target | $1,000,000 |
| Spending in final year | $60,984 |
Values shown are produced by this page in your browser; change any input to update them.
How to use the Inflation-Proof Portfolio Calculator
- Portfolio value ($) β default 500000
- Annual spending ($) β default 30000
- Inflation rate (%) β default 3
- Desired real return (%) β default 2
- Years β default 25
- Press Calculate to update the results instantly.
Frequently asked questions
Nominal return is the headline number; real return is what is left after inflation. A 8% nominal return with 3% inflation is a 4.85% real return, and it is the real figure that protects your spending.
Dividing annual spending by the real return gives the required pot. At a 2% real return and $30,000 of spending, that is $1.5 million β which is why 2% is not much of a margin.
Equities over long periods, index-linked government bonds, property and some commodities. Cash and conventional bonds are the most exposed, which is why holding them for decades is risky.