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Real interest rate

Work out the real interest rate from a bond yield and inflation. It is often watched alongside gold, though the link is loose at times.

Example numbers are loaded. Replace them with figures from the company's own filings.
Real interest rate
1.50%
Yield minus inflation
Exact figure
1.46%

How it works

The real rate is a bond yield minus inflation: what a saver earns after rising prices. Gold pays no interest, so when real rates are low, holding it costs less in income given up.

The quick figure subtracts. The exact figure divides one plus the yield by one plus the inflation rate. They differ a little when rates are high.

Use a government bond yield and an inflation figure from the same date and the same country. Yield minus past inflation looks backward. Inflation-linked government bonds, such as US TIPS, quote a real yield directly.

Read the guide: Why Gold Tends to Move With Real Interest Rates →

For education only. Not investment advice. The results are only as good as the numbers entered; check every figure against the company's own filings. See the Disclaimer.

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