Finance
Real Interest Rate
Inflation-adjusted rate (Fisher equation).
Formula
Formula
r_real = 1+r1+i − 1
Variables
| Symbol | Definition | Type & range | Units | Role |
|---|---|---|---|---|
| r | nominal rate | real number (ℝ) | — | input |
| i | inflation rate | real number (ℝ) | — | input |
Try it yourself
Interactive calculator
Worked examples
Example 1
Givennominal (%) = 7, inflation (%) = 3
Result3.883495146
Example 2
Givennominal (%) = 5, inflation (%) = 2
Result2.941176471