How to Calculate if Your Making Money After Inflation On Money That is Collecting Interest

 Interest is fairly straightforward, right? Invest a $100 at 10% and at the end of the year, you have $110. Seems like free money, but what about inflation, the destroyer of dreams? Let's say the government collects a fifth of your interest in taxes. So of the $10 you made off of interest, the government takes two. Now you have $8 left over. However, let's say that the inflation rate is 80% (Hopefully it isn't but bear with me here). That takes away the eight dollars you already had because $108 is worth the same as a $100 when you invested. So you really didn't make any money, but at least you didn't lose any either, which is why it's better to put your money in a bank instead of stuffing it under your bed.