The after-tax real rate of return is the profit or loss on an investment after accounting for inflation and taxes.

Learn about the real rate of return, how to calculate it, and why you must use real rates of return in your financial plans.

Real rate of return adjusts the profit figure from an investment to take into account the effects of inflation.

The real rate of return is defined as the nominal rate of return after adjusting for inflation. Learn how real rates impact investors, businesses, and the economy.

As a result, the 8% rate of return is a surface-level indicator of the investment’s performance. In an environment with high inflation and taxes, your real return could be next to nothing.

Several basic guidelines can help you compare investment properties. Ideally, a comprehensive analysis would consider every ...

Investors use rate of return to understand the earnings or losses on an investment in a specified period of time. Learn more about how it’s calculated.

As a result, the 8% rate of return is a surface-level indicator of the investment's performance. In an environment with high inflation and taxes, your real return could be next to nothing.

Instead, the real rate of return will help you understand how much money you’ll have in your pocket in retirement.

To calculate real return, subtract inflation rate from nominal return after taxes. Positive real returns show investment growth exceeds inflation; negative means a loss.