What Is Real Interest Rate? When you look at your credit card statements, loan documents, or savings account, you're usually seeing the nominal interest rate.
Inflation rate calculator solving for real interest rate given nominal interest rate and inflation.
Real interest rate (%). International Monetary Fund, International Financial Statistics and data files using World Bank data on the GDP deflator. License: Open. And if you are a lender or investor, you want to ensure the interest rate you're charging on your loan, or the rate of return on your investment, is at the very least keeping up with inflation. Interest rates quoted in the markets are nominal, so one typically has to adjust them for inflation. Let's practice using the real interest rate Real interest rate. How can I learn more about the HR Connect Program? How to Become an Investment Consultant: Education and Career Roadmap. Real versus Nominal Interest Rates