💰 Fisher Effect Calculator
Use the Fisher Effect to see how nominal interest rates, real interest rates, and expected inflation relate to one another.
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What is the Fisher Effect?
The Fisher Effect describes the relationship between nominal interest rates, real interest rates, and expected inflation. It shows that the nominal rate lenders charge reflects both the real return they want and compensation for expected inflation.
The Formula
The exact form is (1 + Nominal Rate) = (1 + Real Rate) × (1 + Inflation Rate). A common simplified approximation, used when rates are small, is Nominal Rate ≈ Real Rate + Inflation Rate. This calculator shows both.
Note: This tool is for general educational and planning purposes only, not professional financial advice.
Last reviewed August 2026