Money · RATIOXA GLOSSARY

Real interest rate

Interest rate after inflation, approximately nominal rate minus inflation.

01

Simple definition

Interest rate after inflation, approximately nominal rate minus inflation.

02

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.

03

Worked example

4% nominal with 2% inflation is roughly 2% real.