Real Rate of Return Calculator

# Real Rate Of Return Calculator

The **real rate of return is the annual** **percentage(%)** **of return on an** **investment.**** **The Real Rate of Return Equal to 1 numbers of value added to nominal Rate of return(%) divided to 1 number of value added to annual inflation rate(%) less then 1.0 number of value.

**formula us,**

** **Real Rate of Return = (1 + rnom) / (1 + π) − 1.0

**let us Consider,**

- rᵣ – real rate of return;
- rnom – nominal rate of return; and
- π – annual inflation rate.

## Calculate the Real Rate Of Return

It is a simple calculator with only three variables, which are the following:

** **Real Rate of Return = (1 + rnom) / (1 + π) − 1.0

- Nominal rate of return(5%)
- Inflation rate(3%)
- Real rate of return is 1.9417 %

** **