After-tax real rate of return

(redirected from After Tax Real Rates of Return)

After-tax real rate of return

The after-tax rate of return minus the inflation rate.

After-Tax Real Rate of Return

The rate of return on an investment after subtracting taxes and adjusting for inflation. It is calculated simply by taking the after-tax return and subtracting the inflation rate. For example, if the after-tax return is 7% and the inflation rate is 4%, the after-tax real rate of return is 3%.