HomeDefinitionsCompareDebt Rate of returnThe financial definition for Rate of return:Calculated as the (value now minus value at time of purchase) divided by value at time of purchase. For equities, we often include dividends with the value now. See also: Return, annual rate of return. Similar MatchesAfter tax real rate of returnAfter tax real rate of returnThe after-tax rate of return minus the inflation rate. Annual rate of returnAnnual rate of returnThere are many ways of calculating the annual rate of return. If the rate of return is calculated on a monthly basis, we sometimes multiply this by 12 to express an annual rate of return. This is often called the annual percentage rate (APR). The annual percentage yield (APY), includes the effect of compounding interest. Annualized holding period returnAnnualized holding period returnThe annual rate of return that when compounded t times generates the same t-period holding return as actually occurred from period 1 to period t. Further SuggestionsArithmetic average (mean) rate of returnAverage accounting return Average rate of return (ARR) Cash on cash return Certainty Equivalent Return Compound Annual Return Consolidated tax return Click to compare definitions of Rate of return Click to view definitions beginning ra |