Here's the formula: Real interest rate = nominal interest rate - rate of inflation (actual or expected) Here is an example from an investor's point of view. Say the initial interest rate on a bond ...

Real interest rates are negative if the inflation rate exceeds the nominal rate of an investment. For example, a bond with a 3% nominal rate will have a real interest rate of -1%, if the inflation ...

The formula for calculating savings account interest uses the initial deposit, the annual interest rate and the years of ... the interest that accrues. For example, if your initial deposit was ...