TIPS Real Yield Return Calculator
TIPS pay a real yield plus adjust their principal for inflation, but that combination compounds rather than simply adding together, and selling before maturity still carries real rate risk. This calculator models both your return held to maturity and the price impact of selling early into a rate move.
How to use it:
Enter your investment amount, the real yield at purchase, expected annual inflation, and years to maturity.
The "Held to Maturity" box shows your inflation-adjusted principal, total nominal value, gain, and effective annualized return.
To model selling early, enter how many years you'd hold before selling and a real yield change by that date (positive means rates rose). The "Sold Early" box compares your value under that rate move against what it would have been if rates hadn't moved at all.