# Rate of Return

Rate of Return is the gain or loss on an investment over a specified period, expressed as a percentage increase over the initial investment cost.

# Rate of Return

**Rate of Return** is the gain or loss on an investment over a specified period, expressed as a percentage increase over the initial investment cost.

## 'Rate Of Return' Interpretation

Return is a profit on an investment. It comprises any change in value, and interest or dividends or other such cash flows which the investor receives from the investment.

Gains on investments are considered to be any income received from the security plus realized capital gains. The time period is typically a year, in which case the rate of return is referred to as annual return. A loss instead of a profit is described as a negative return.