Real Return
Inflation-Adjusted Return
Investment PlanningThe actual return on investment after adjusting for inflation. Shows the true purchasing power gained.
Formula
Real Return = [(1 + Nominal Return) / (1 + Inflation)] - 1
Why it matters
A 10% return with 6% inflation gives only 3.77% real return. Essential for long-term financial planning.
Indian example
Related terms
Learn the concept
Time Value of Money →From the research
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