Real interest rate
An interest rate minus inflation — what savers earn in buying-power terms.
3 min read · Reviewed September 2026
In plain words
If a savings account pays 4% but inflation is 6%, your real interest rate is −2%: you're getting poorer even while earning interest. The real rate is what actually matters for investment and saving decisions.
Frequently asked questions
What is the real interest rate today?
The real rate equals the nominal policy or savings rate minus inflation. When inflation is above the policy rate, the real rate is negative. You can calculate it by subtracting the current 12-month CPI rate from the central bank's policy rate.
Further reading