Reaalituotto
Reaalituotto, or real return, is the return on an investment after adjusting for inflation. It expresses how much purchasing power the investment has gained or lost over a given period, rather than the nominal amount of money earned.
Real return is typically calculated using the Fisher equation. The exact formula is R_real = (1 + R_nominal)
Important considerations include the choice of price index (for example, consumer price indices such as CPI
Applications of real return analysis include comparing performance across assets and periods, planning for long-term goals
See also: Fisher equation, real interest rate, inflation-indexed securities, nominal return, risk-adjusted return.