Convert a nominal interest rate and inflation into the exact real rate: (1 + i) / (1 + π) − 1.
| Real (%) | – |
Use this Fisher calculator when you want the inflation-adjusted return, not the rough i − π shortcut. Inflation of −100% is rejected (division by zero).
Real rate = (1 + nominal) / (1 + inflation) − 1, with both inputs as percents (6 and 2 for 6% and 2%). The approximation i − π is close only when both rates are small.
Nominal (%): Stated interest or return, as a percent.
Inflation (%): Price-level change over the same period, as a percent (can be negative for deflation).
Real (%): Inflation-adjusted rate as a percent.
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