- real interest rate
- The actual interest rate less the current rate of inflation. For example, if a building society is paying 5% interest and the rate of inflation is 3%, the real growth of a deposit held for a year in the building society is 2% - this is the real rate of interest. Real interest rates are used to calculate more accurate pre-tax returns on investment, i. e. by discounting inflation.

*Big dictionary of business and management.
2014.*

### Look at other dictionaries:

**Real interest rate**— The real interest rate is approximately the nominal interest rate minus the inflation rate (see Fisher equation and below for exact equation). Since the inflation rate over the course of a loan is not known initially, volatility in inflation… … Wikipedia**Real Interest Rate**— An interest rate that has been adjusted to remove the effects of inflation to reflect the real cost of funds to the borrower, and the real yield to the lender. The real interest rate of an investment is calculated as the amount by which the… … Investment dictionary**real interest rate**— interest rate as influenced by changes in the index … English contemporary dictionary**Real interest rate**— The rate of interest excluding the effect of inflation; that is, the rate that is earned in terms of constant purchasing power dollars. Interest rate expressed in terms of real goods, i.e. nominal interest rate adjusted for inflation. The New… … Financial and business terms**real interest rate**— The rate of interest excluding the effect of expected inflation; that is, the rate that is earned in terms of constant purchasing power dollars. Interest rate expressed in terms of real goods, i.e. nominal interest rate adjusted for expected… … Financial and business terms**real interest rate**— Fin interest rate approximately calculated by subtracting the rate of inflation from the nominal interest rate … The ultimate business dictionary**real interest rate**— /rɪəl ɪntrəst reɪt/ noun an interest rate after taking inflation into account … Dictionary of banking and finance**Interest rate**— Finance Financial markets Bond market … Wikipedia**interest rate**— The percentage of an amount of money which is paid for its use for a specified time. Commonly expressed as an annual percentage rate (APR). Federal and state laws regulate interest rate amounts and disclosures on consumer loans. See annual… … Black's law dictionary