Real Return Calculator
Inflation-Adjusted Return
Required Nominal Return
Formula
Real Return = [(1 + Nominal Return) / (1 + Inflation Rate)] - 1 (Fisher Equation)
Frequently Asked Questions
What is real return?
Real return is your investment return after adjusting for inflation. It represents the actual increase in your purchasing power, not just the nominal dollar growth.
Why is the Fisher equation more accurate?
The Fisher equation (Real = (1+Nominal)/(1+Inflation) - 1) accounts for the compounding interaction between nominal returns and inflation. The simple approximation (Nominal - Inflation) is close but slightly overestimates real returns, especially at higher rates.
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