💹 Real Rate of Return Calculator
Calculate the inflation-adjusted real rate of return on any investment using the Fisher equation.
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Fisher Equation
Real Return = (1 + Nominal) / (1 + Inflation) − 1
Approximation: Real ≈ Nominal − Inflation
Approximation: Real ≈ Nominal − Inflation
An 8% nominal return with 3% inflation gives ~4.85% real return. Over 10 years, $10,000 grows to $21,589 nominally but only $15,938 in today's purchasing power.
Real Rate of ReturnFisher EquationInflation-AdjustedPurchasing Power