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Real Return

Converts a nominal return into a real, after-inflation return.

Interactive inputs coming — use the formula and example below.

Exemple concret

A 7% return with 3% inflation is about 4% real.

Comment l'utiliser

  • Use the formula below with your own figures.

La formule

Real return ≈ nominal − inflation.

Exemple concret

A 7% return with 3% inflation is about 4% real.

Questions fréquentes

Why does it matter?

Real return is your true gain in buying power.

Exact formula?

(1+nominal)/(1+inflation) − 1.

Conseils

  • Compare money across years in real terms.
  • Hold assets that grow at or above inflation.
  • Cash quietly loses value when prices rise.

Termes clés

CPI
A price index for a basket of goods.
Real return
Return after inflation.
Purchasing power
What a sum can actually buy.