Inflation-adjusted (or “real”) figures account for the eroding effect of inflation on purchasing power. A rupee today will buy less in 10 years; inflation-adjusted numbers show values in today’s terms so you can compare across time.

For early retirement and FIRE planning, inflation adjustment is critical. Your retirement corpus target must account for inflation over a 30–50 year horizon. India’s historical inflation has averaged around 6–7% annually.

When calculators show “inflation-adjusted corpus” or “real returns,” they subtract expected inflation from nominal returns. For example, 12% nominal returns with 6% inflation ≈ 6% real returns. Always plan your FIRE number and withdrawal rate in inflation-adjusted terms.