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Real Rate of Return Formula

Real Rate of Return=((1+Nominal Rate)/(1+Inflation Rate))-1
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How to Calculate Real Rate of Return?

Real Rate of Return calculator uses Real Rate of Return=((1+Nominal Rate)/(1+Inflation Rate))-1 to calculate the Real Rate of Return, Real Rate of Return is the annual percentage return realized on an investment, which is adjusted for changes in prices due to inflation or other external effects. Real Rate of Return and is denoted by Real RR symbol.

How to calculate Real Rate of Return using this online calculator? To use this online calculator for Real Rate of Return, enter Nominal Rate (NR) and Inflation Rate (IR) and hit the calculate button. Here is how the Real Rate of Return calculation can be explained with given input values -> 1.222222 = ((1+19)/(1+8))-1.

FAQ

What is Real Rate of Return?
Real Rate of Return is the annual percentage return realized on an investment, which is adjusted for changes in prices due to inflation or other external effects and is represented as Real RR=((1+NR)/(1+IR))-1 or Real Rate of Return=((1+Nominal Rate)/(1+Inflation Rate))-1. Nominal Rate refers to the interest rate before taking inflation into account. and Inflation Rate is the rate at which the general level of prices for goods and services is rising and, consequently, the purchasing power of currency is falling.
How to calculate Real Rate of Return?
Real Rate of Return is the annual percentage return realized on an investment, which is adjusted for changes in prices due to inflation or other external effects is calculated using Real Rate of Return=((1+Nominal Rate)/(1+Inflation Rate))-1. To calculate Real Rate of Return, you need Nominal Rate (NR) and Inflation Rate (IR). With our tool, you need to enter the respective value for Nominal Rate and Inflation Rate and hit the calculate button. You can also select the units (if any) for Input(s) and the Output as well.
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