Real Return Calculator

Real Return Calculator calculator can be used to calculate the real return on an investment after adjusting for inflation.

Input Parameters

Calculation Results

Real Return Result

0.00%

Where:
Real Return = (1 + Nominal Return) / (1 + Inflation Rate) - 1

Real Return Calculator Calculator Usage Guide

Learn how to use the Real Return Calculator calculator and its working principles

How to Use the Real Return Calculator

The Real Return Calculator helps you determine the actual return on an investment after accounting for inflation. Follow these steps to use the calculator:

  1. Enter the Nominal Return percentage in the first input field. This is the stated return on your investment before adjusting for inflation.
  2. Enter the Inflation Rate percentage in the second input field. This is the rate at which the general level of prices for goods and services is rising.
  3. Click the Calculate button to compute the real return.
  4. The calculator will display the Real Return percentage, which represents the actual return on your investment after adjusting for inflation.

Understanding the Calculation Formula

The formula used to calculate the real return is:

Real Return = (1 + Nominal Return) / (1 + Inflation Rate) - 1

This formula adjusts the nominal return by the inflation rate to provide the real return, which reflects the actual purchasing power gained from the investment.