Definition of rate of return in English:

rate of return


  • The annual income from an investment expressed as a proportion (usually a percentage) of the original investment.

    • ‘It will also use the money for financing investments that will produce a better rate of return than the interest it will have to pay on its new loan notes.’
    • ‘There is a huge problem with the simple assumption that your expected annual rate of return is the same each and every year.’
    • ‘It is because the interest deduction impacts an investor's after-tax rate of return.’
    • ‘Because of the time value of money, the longer the person lives, the lower the rate of return on the investment.’
    • ‘We do not actually attempt to get, say, a 10 percent real rate of return on the investment in our roading system.’
    • ‘It has a high equity content of 80 per cent and a good rate of return.’
    • ‘This steepness indicates a large rate of return from transferring income from the young to the old.’
    • ‘In order to do that, the tax system must let savers earn the full gross rate of return on their investments.’
    • ‘These results show a very high private rate of return to investment in tertiary education.’
    • ‘The standard story of entry and exit leads to a long-run equilibrium in which all firms earn only a normal rate of return on investment.’