What is Foolsaurus?

It's a glossary of investing terms edited and maintained by our analysts, writers and YOU, our Foolish community.

Real return

The real return is the inflation-adjusted returns of an investment.

Expanded Definition

For example, the returns for stocks during the 20th century were approximately 11% annually. However, that does not factor in the roughly 3% annual inflation rate over the same time period. Therefore, the real return of stocks was approximately 8% annually.

Related Terms

Recent Mentions on Fool.com