Money · RATIOXA GLOSSARY

Real return

Return after accounting for inflation and therefore closer to the change in purchasing power.

01

Simple definition

Return after accounting for inflation and therefore closer to the change in purchasing power.

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

If wealth rises 4% while prices rise 3%, purchasing power grows only about 1%.