Real Return Calculator
Real Return Calculator
Component | Description |
---|---|
Nominal Return | The total return on an investment without adjusting for inflation. |
Inflation Rate | The rate at which the general level of prices for goods and services is rising. |
Real Return | The return on an investment after adjusting for inflation. |
Formula | Real Return = ((1 + Nominal Return) / (1 + Inflation Rate)) – 1 |
Purpose | Used to measure the true return on an investment, considering the effects of inflation. |