Search in Indianmoney's WealthPedia

How do you calculate real and nominal interest rate?

By IndianMoney , 8 months ago

For real interest rate, we take the nominal interest rate and subtract the inflation rate. Example: If a loan has a 8 percent interest rate and the inflation rate is 4 percent, then the real return on that loan is 4 percent. For calculating the real interest rate, we used the actual inflation rate.

What is your Credit Score? Get FREE Credit Score in 1 Minute!

Get Start Now!

This is to inform that Suvision Holdings Pvt Ltd ("") do not charge any fees/security deposit/advances towards outsourcing any of its activities. All stake holders are cautioned against any such fraud.