The interest rate after subtracting inflation – the actual gain in purchasing power.
Approximately: real rate = nominal rate − inflation. If a savings account pays 3% and inflation runs at 2.5%, the real rate is about 0.5%. Negative real rates mean safe money loses purchasing power. Real rates influence the valuation of many assets – especially gold, which pays no interest, and fast-growing stocks. Inflation-protected bonds (TIPS) show the market’s real yield directly.