So as to create a real return does anyone favor a "CPI Inflation Calculator" over this one?
https://www.bls.gov/data/inflation_calculator.htm
Vinny
Real Return
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vnatale
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Real Return
Above provided by: Vinny, who always says: "I only regret that I have but one lap to give to my cats." AND "I'm a more-is-more person."
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vnatale
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Re: Real Return
Asking again to see if I get any response this time around.vnatale wrote: ↑Fri Nov 29, 2019 9:03 pm So as to create a real return does anyone favor a "CPI Inflation Calculator" over this one?
https://www.bls.gov/data/inflation_calculator.htm
Vinny
Vinny
Above provided by: Vinny, who always says: "I only regret that I have but one lap to give to my cats." AND "I'm a more-is-more person."
Re: Real Return
CPI calc is very good. To get real return, you don't do subtraction. It's a ratio.
NOT THIS RR = NR - IR
THIS
1+RR/100 = (1+NR/100)/(1+IR/100)
IR inflation rate, NR nominal return, RR real return all in %
The wrong way is close, but not exact.
NOT THIS RR = NR - IR
THIS
1+RR/100 = (1+NR/100)/(1+IR/100)
IR inflation rate, NR nominal return, RR real return all in %
The wrong way is close, but not exact.