What is Real Interest Rate?
Real Interest Rate — The interest rate after subtracting inflation — what a lender actually earns in purchasing power.
In simple terms
A 7% rate with 6% inflation is only a 1% real rate.
Why Real Interest Rate matters when you invest
Understanding real interest rate helps you make better-informed decisions when you invest and trade on ROAR by DP TradeKING. Open a free account to put it into practice — ₹0 delivery brokerage and zero-commission direct mutual funds.
Real Interest Rate — frequently asked questions
What is Real Interest Rate?
The interest rate after subtracting inflation — what a lender actually earns in purchasing power.
What does Real Interest Rate mean in the stock market?
The interest rate after subtracting inflation — what a lender actually earns in purchasing power. A 7% rate with 6% inflation is only a 1% real rate.
Can you give an example of Real Interest Rate?
A 7% rate with 6% inflation is only a 1% real rate.
Related terms
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