# rate of return

## Definition

**also called**return.

## Use rate of return in a sentence

“ The RATE OF RETURN for my ROTH IRA is a miniscule .5% annual return on investments which is 20 times less than my stock market percentage. ”

“ My company decided not to invest in the bond offering from our competitor because we believed the rate of return was not high enough to justify the risk. ”

“ In purchasing the recently foreclosed house in an area experiencing gentrification, the new owner sought to make a significant rate of return by converting it to a rental property for young people right out of college. ”

## Related Terms

### Mentioned in these terms

- simple rate of return
- dollar-weighted rate of return
- net internal rate of return (net IRR)
- after-tax real rate of return
- incremental internal rate of return
- risk adjusted rate of return
- fair rate of return
- real rate of return
- financial management rate of return (FMRR)
- time weighted average annual rate of return