Skip to main content

🚀 We're live on Product Hunt today — your support means the world

Glossary · investing

What is Real return?

Investment return after subtracting inflation — the true growth of purchasing power.

Last updated

Nominal returns look better than they are during high inflation. A 6% return with 4% inflation is only a 2% real gain in purchasing power.

Practice this in Aurora

See a plain-English bull/bear/bias breakdown on any stock — no signup needed.

Open Decision Lab

Frequently asked questions

How to calculate real return?

(1 + nominal) / (1 + inflation) − 1.

Related terms