# Real Return

*Everyday Money — Finicade finance glossary*

The return on an investment after subtracting inflation — what your money can actually buy more of, not just the bigger number. A 5% return with 3% inflation is only a 2% real gain; ignore inflation and you overstate how well you're doing.

**Related terms:** [Inflation](https://finicade.com/glossary/inflation), [Yield](https://finicade.com/glossary/yield), [Time Value of Money](https://finicade.com/glossary/time-value-of-money)

**Taught in:** Charter Climb — Rates, Returns & Money-Weighting

Source: https://finicade.com/glossary/real-return