Real Rate of Return
InvestingThe nominal return minus inflation — showing the actual increase in purchasing power from an investment.
Example
Example: Consider an investor building a $100,000 portfolio. Real Rate of Return — the nominal return minus inflation — showing the actual increase in purchasing power from — directly affects investment strategy and long-term returns. Getting this concept right can mean tens of thousands of dollars in difference over a 20-year period. Model your portfolio with our investment calculator.