Finance

Fisher Equation Calculator

Convert between nominal and real returns using the exact Fisher equation.

Nominal Return (%)

Inflation Rate (%)

Investment Amount ($)

Optional — see real vs nominal returns in dollars

Fisher Equation:
(1 + r_real) = (1 + r_nominal) / (1 + inflation)
r_real = [(1 + r_nom) / (1 + inflation)] − 1

Nominal vs Real Returns

A 10% nominal return with 3.5% inflation yields only ~6.3% real return. Always consider real returns — they reflect your actual increase in purchasing power.