Real Rate Of Return Calculator Online

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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 %

 

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