Definitions for **"real rate of return"**

Rate of return after adjusting for inflation.

The rate of return of an investment, minus the inflation rate over the same period.

Return (usually expressed as a percentage) obtained by investors after allowing for inflation.

The return or percentage profit after inflation and taxes.

The real rate of return on an investment is the rate of return minus the rate of inflation. For example, if you are earning 6% interest on a bond in a period when inflation is running at 2%, your real rate of return is 4%. But if inflation were at 4%, your real rate of return would be only 2%.

The stated rate of return less both the inflation rate tax considerations and the risk premium.

The rate of return on an investment minus the rate of inflation gives you a real rate of return. For example, if you are earning 6% interest on a bond in a period when inflation is running at 2%, your real rate of return is 4%, which is large enough to increase your buying power. But if inflation were at 4%, your real rate of return would be only 2%. Finding your real rate of return, however, is generally a calculation you have to do on your own. It isn't provided in annual reports, prospectuses, or other publications that report investment performance. In the U.S., the exception is mutual funds, which must report after-tax returns.

The difference between the rate of return and a selected measure of inflation (often taken as CPI) over a period.

The return on an investment adjusted for inflation. For example, if an investment pays 6% annually, but inflation is 2%, the real rate of return is 4% (6% - 2% = 4%).

The annual percentage return realized on an investment, adjusted for changes in the price level due to inflation or deflation.

The adjusted after-inflation return, calculated by subtracting the current rate of inflation from the rate of return earned on a specific investment.

The percentage of return on an investment over one year after adjustments for inflation or deflation

The amount by which the rate of return exceeded the rate of inflation over a period. For example some industry funds have an investment goal that their rate of return to members should, over any three year period, exceed the rate of inflation by an average of at least 3% per annum (depending on the particular investment strategy and objectives). This would be the same as a real rate of return of 3% per annum.

An investment's return that is adjusted for inflation. See: Inflation; Return

The return from an investment after taking account of inflation. For example, if your investment pays 5% and inflation is 4%, your real rate of return is 1%.

This is the rate of return on an investment with an amount taken off to account for inflation. This rate of inflation could measure rises in prices or earnings.

The percentage return on some investments that has been adjusted for inflation.

The return on an investment after it is adjusted for the effects of inflation.

The nominal rate of return minus the rate of inflation.

The return on an investment after it has been adjusted for inflation.

Nominal return adjusted for inflation.

The Real Rate of Return refers to the annual return on an investment after being adjusted for inflation and taxes.

The return amount after taking account of inflation. For example, the real rate of interest is the rate with inflation deducted, similarly the real rate of growth after accounting for inflation.

Yield to investors net of an inflationary factor. The formula for calculating the real rate of return is [(1 + nominal yield) / (1 + inflation rate)] - 1.