rate of return

USAGE SUMMARY

"rate of return" is a correct phrase to use in written English.
It is usually used in a financial context to refer to the amount of money, expressed as a percentage, that an investment or asset is expected to yield over a period of time. For example: "The company was disappointed by the low rate of return they received on their investments."

✓ Grammatically correct

News & Media

Academia

Science

Human-verified examples from authoritative sources

Exact Expressions

59 human-written examples

That's his rate of return.

Yale University

So that's the real rate of return.

Yale University

Talk about a diminishing rate of return.

The New York Times

Results: The rate of return was 44%.

Journal of Manipulative and Physiological Therapeutics

· Current: 7 percent guaranteed rate of return.

The New York Times

Interest rates, net present value, and internal rate of return.

Stanford University

Last year's endowment rate of return was 22.1percentt.

Massachusetts Institute of Technology

Who thinks we should worry about the rate of return?

Yale University

Last year, MIT's rate of return was 18.1percentt.

Massachusetts Institute of Technology

But the rate of return on capital improved too.

The Guardian

Human-verified similar examples from authoritative sources

Similar Expressions

1 human-written examples

2. Rate-of-Return Assumptions.

Huffington Post

Expert writing Tips

Best practice

Specify whether the "rate of return" is nominal (before inflation) or real (after inflation) to avoid confusion.

Common error

Don't use "rate of return" interchangeably with "profit". "Rate of return" is a percentage that relates the profit to the initial investment, while "profit" is the absolute amount earned.

Linguistic Context

The phrase "rate of return" functions as a noun phrase, typically acting as the subject or object of a sentence. It denotes a financial metric used to evaluate the profitability of an investment over a period. As Ludwig AI confirms, its a correct phrase to use in written English.

Expression frequency: Very common

Frequent in

News & Media

37%

Academia

28%

Science

23%

Less common in

Formal & Business

8%

Wiki

3%

Reference

1%

Ludwig's WRAP-UP

The phrase "rate of return" is a very common and grammatically sound term primarily used in financial and economic discussions. Ludwig AI validates its correctness for use in written English. It quantifies investment profitability, finding frequent application in the realms of News & Media, Academia, and Science. While alternatives like "investment yield" or "return on investment" exist, understanding the specific context ensures the most accurate expression. Key considerations involve clarifying the time period and distinguishing between nominal and real values to avoid misunderstandings. Remember, it's a percentage, not an absolute profit figure.

More alternative expressions

Phrases that express similar concepts, ordered by semantic similarity:

percentage return

Highlights the return expressed as a percentage.

investment yield

Focuses specifically on the income generated by an investment.

return on investment (ROI)

Emphasizes the profitability of an investment relative to its cost.

realized return

Specifies the actual return after an investment has matured or been sold.

investment return ratio

A ratio measuring the efficiency of an investment.

yield rate

Highlights the percentage of income received from an investment.

annual return

Specifies the return earned over a one-year period.

profit margin

Refers to the percentage of revenue exceeding the cost of goods sold.

earnings yield

Relates earnings to the price of an investment.

investment gain

Focuses on the increase in value of an investment.

FAQs

How do I calculate the "rate of return" on an investment?

The basic formula is: ((Final Value - Initial Value) / Initial Value) * 100. This gives you the percentage gain or loss on your investment.

What's a good "rate of return" to aim for?

A "good" rate varies depending on the investment type, risk tolerance, and market conditions. There's no one-size-fits-all answer.

Which is correct, "rate of return" or "return on investment" (ROI)?

Both are correct, but they're often used in slightly different contexts. "Rate of return" is a general term, while "return on investment" (ROI) specifically measures the profitability of an investment relative to its cost.

What can I say instead of "rate of return"?

You can use alternatives like "investment yield", "percentage return", or "annual return", depending on the specific aspect you want to emphasize.