Online Tools and Calculators > Financial Calculators > Real Rate of Return Calculator

Real Rate of Return Calculator

Nominal rate of return: %
Inflation rate: %

About Real Rate of Return Calculator

The online Real Rate of Return Calculator is used to calculate the real rate of return.

Real Rate of Return Definition

The real rate of return is the rate of return on an investment after adjusting for inflation.

Formula

The real rate of return calculation formula (known as Fisher equation) is as following:

r = (1 + n)/(1 + i) - 1

where
r = real rate of return
n = nominal rate of return
i = inflation rate

For example, if you have a nominal rate of return of 6% on a investment in a period when inflation is averaging 2%, your real rate of return is 3.922%.

©2017 Miniwebtool | Terms and Disclaimer | Privacy Policy | Contact Us