Real Interest Rate Calculator
How to Use the Real Interest Rate Calculator
Step 1: Enter the Nominal Interest Rate
First, enter the nominal interest rate into the appropriate input box. This reflects the announced or set interest rate before considering inflation.
Step 2: Enter the Inflation Rate
Next, enter the inflation rate into the appropriate input box. This reflects the estimated inflation rate.
Step 3: Press the "Calculate Real Interest Rate" Button
After entering both values, press the "Calculate Real Interest Rate" button to perform the calculation. The calculator will automatically take the nominal interest rate and the entered inflation rate and compute the real interest rate.
Step 4: Interpretation of Results
The calculation result, displayed in the real interest rate cell, indicates the interest rate after accounting for the inflation rate. This result provides a more accurate picture of the actual interest rate value of an investment or loan, as it has considered the influence of inflation.
