Real Rate of Return Calculator

Adjust a nominal return for inflation.

Real return (%) 4.854

Formula: real = (1+nominal)/(1+inflation) − 1

Step-by-step with your numbers:

1. Values used:

2. Nominal return = 8 %

3. Inflation rate = 3 %

5. Real return = 4.854%

Did we solve your problem today?

Your real return is what's left after inflation.

The math behind it

Fisher equation: real return = (1 + nominal) ÷ (1 + inflation) − 1.

8% nominal, 3% inflation → 4.85% real.

Quick approx?

real ≈ nominal − inflation (close for small rates).