Real Investment Return
Remove inflation from a nominal investment return.
Your numbers
Real return
Educational estimate using your entered assumptions; no live prices, tax rules or guaranteed returns.
Scenario comparison
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Formula
Use R = (1+r)/(1+f)−1. r is nominal return, f is inflation, and R is real return. Rates in the equation are fractions over the same period.
Remove inflation from a nominal investment return.
Worked example
- Nominal return (%)
- 10
- Inflation (%)
- 5
- Real return
- 4.7619047619 %
Scope and limitations
Educational estimate using your entered assumptions; no live prices, tax rules or guaranteed returns.
Inputs are checked for missing values and allowed ranges. A result outside the finite numeric range is not displayed. Rounding affects display, while the calculation uses the model’s numeric precision.
Check your units and assumptions before relying on a result. Changing a label does not convert a currency or physical unit.
Formula version: 435dc1260f18 · Example checked: