Real Rate of Return Calculator
About Real Rate of Return Calculator
The 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 follows:
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 an investment in a period when inflation is averaging 2%, your real rate of return is 3.922%.
