Two measures
Nominal value answers a different question from real value.
Nominal return is the percentage change in the portfolio expressed in currency at the time it is measured. Inflation is the change in the general price level. If prices rise, the same number of euros may purchase less. The relationship is approximately: real return = (1 + nominal return) ÷ (1 + inflation) − 1.
ETF Compass applies the selected inflation rate after calculating the terminal portfolio value and the selected currency-stress adjustment. Its real-value result is therefore a purchasing-power comparison, not a second investment return and not an official inflation forecast.
Market returns are irregular. A constant annual return is a simplifying input that makes scenarios comparable; it does not reproduce a historical index path, drawdowns, or the timing of gains and losses.
Worked example
Use the same assumptions to see both views.
6% nominal growth and 2% annual inflation
For one year, the approximate real return is (1.06 ÷ 1.02) − 1 = 3.92%. Over a longer period, inflation compounds as well. A €100,000 nominal amount after 20 years with a 2% inflation assumption has the purchasing power of roughly €67,300 today, before considering any other change to the scenario.
Try a 20-year €5,000 initial and €300 monthly scenario in the calculator: open the illustrative inputs. Compare the nominal and real result, then change only inflation from 2% to 3%. The difference is an assumption sensitivity, not a prediction.
The calculation still includes selected deposits, conversion and broker fees, TER, applicable configured taxes, and stress adjustment. It excludes future price changes, your spending pattern, withdrawals, and any guarantee about what a portfolio will deliver.
How to use it
Plan ranges, not a single promised outcome.
Start with a contribution you can sustain. Then compare a cautious return with higher inflation, a central case, and a case with a contribution pause. Looking at both nominal and real outcomes makes it easier to distinguish a larger future number from a meaningful change in purchasing power.
Inflation data describe the past or current measured price changes, while the calculator asks you to provide a future assumption. Review it when your time horizon or spending goal changes, and consult current official data instead of carrying an old estimate forward indefinitely.
Sources reviewed 18 August 2026
Primary references
No personalized advice
This article is general education, not a recommendation or a forecast. Seek regulated professional advice where appropriate for your circumstances.
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