🪙 Real Rate of Return Calculator
Find your true, inflation-adjusted rate of return by removing the effect of inflation from your nominal investment return.
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What is the real rate of return?
The real rate of return adjusts your investment’s nominal (stated) return for the effect of inflation, showing how much your purchasing power actually increased. A high nominal return during high inflation can still leave you worse off in real terms.
The formula
This calculator uses the precise Fisher equation: Real Rate = [(1 + Nominal Rate) / (1 + Inflation Rate)] – 1. It also shows the commonly used simple approximation (Nominal Rate – Inflation Rate) for comparison, which is close but slightly less accurate at higher rates.
This tool is for general educational and planning purposes only and does not constitute financial advice.
Last reviewed August 2026