Formula To Calculate Fisher Equation :

The Fisher equation is a concept of economics stating the relationship between nominal interest rates and real interest rates under inflation.

The Fisher equation is expressed through the following formula:

(1 + i) = (1 + r) (1 + π)

Where,

r = the real interest rate, The real interest rate refers to the amount reflecting the buying capacity of the money borrowed over a specific time.

i = the nominal interest rate, The nominal rate of interest is the type of interest rate which is measured before considering the inflation in an economy.

p = the inflation rate, The inflation rate is a measure of the price inflation comprehending the annual percentage change in the consumer price index (CPI).

However, one can also use the approximate version of the previous formula:

i ≈ r + p