Money · RATIOXA GLOSSARY
Nominal interest rate
Quoted interest rate before fully accounting for inflation or all fees.
Simple definition
Quoted interest rate before fully accounting for inflation or all fees.
Why it matters
This term changes how inputs, cash flows or results should be interpreted. RATIOXA keeps it explicit so two options are compared on the same basis.
Worked example
A 5% nominal rate with 2% inflation is not a 5% real gain.