A nominal return is the headline number your investment reports, but it ignores inflation. The real rate of return tells you how much your buying power actually grew after prices rose. This calculator uses the exact Fisher equation, real equals one plus nominal divided by one plus inflation minus one, rather than the rough shortcut of simply subtracting inflation, so the answer is precise even at higher rates. Enter your nominal annual return and the inflation rate over the same period, and you get the true real return as a percentage. A 7 percent nominal return with 3 percent inflation is worth less than a naive 4 percent, and this tool shows you the honest figure. Use it to compare investments fairly across different inflation environments. All math runs in your browser.
It is your investment return after removing the effect of inflation, showing the true growth in purchasing power rather than the headline nominal rate.
It uses the exact Fisher equation: one plus nominal divided by one plus inflation, minus one, rather than a rough subtraction.
Subtraction is a shortcut that overstates the real return slightly. The Fisher equation gives the precise inflation adjusted figure.
A nominal return is the headline number your investment reports, but it ignores inflation. The real rate of return tells you how much your buying power actually grew after prices rose.
Yes. Real Rate of Return Calculator is completely free, with no sign-up and no usage limits.
Yes. Real Rate of Return Calculator runs in any modern web browser. There is nothing to download or install.
Yes. Real Rate of Return Calculator runs entirely on your device in your browser, so nothing you enter is uploaded to a server.