We provide a complete description of normal affine algebraic varieties over the real numbers endowed with an effective action of the real circle, that is, the real form of the complex multiplicative group whose real locus consists of the unitary circle in the real plane. Our approach builds on the geometrico-combinatorial description of normal affine varieties with effective actions of split tori in terms of proper polyhedral divisors on semiprojective varieties due to Altmann and Hausen.