After-tax real rate of return

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After-tax real rate of return

The after-tax rate of return minus the inflation rate.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

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%.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved