Real Rate of Return Calculator
Calculate the real rate of return on your investments after accounting for inflation. Find out your true investment growth.
Formula
Real Rate = ((1 + Nominal Rate) / (1 + Inflation Rate)) - 1
Interpretation
- Positive real rate: investment grows faster than inflation
- Zero real rate: investment just keeps up with inflation
- Negative real rate: investment loses purchasing power
Tips
- Use real rate to compare investments in different inflation environments
- Nominal rate does not account for inflation
- Real rate is a better measure of true growth