Real Rate of Return Calculator
Convert nominal return to real return after inflation: (1+nominal)/(1+inflation) − 1.
Use the Real Rate of Return Calculator
Enter nominal return (%) and inflation rate (%). Real rate of return is calculated.
Inputs
Nominal return and inflation (both %).
Results
Real rate of return
3.92%
Real rate = (1 + nominal) / (1 + inflation) − 1.
How this calculator works
Real rate = (1 + nominal) / (1 + inflation) − 1. All in decimal.
How to interpret your results
Real rate is the inflation-adjusted return. Negative real rate means loss of purchasing power.
FAQs
What is real rate of return?▾
Return after inflation. Real rate = (1 + nominal) / (1 + inflation) − 1.
Which inputs do I need?▾
Nominal return (%) and inflation rate (%).
When would I use this?▾
To see purchasing power of returns; to compare across periods or countries.
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