Financial Terms Glossary

Rate Of Return

Formal

A loose term describing the general percentage rate of profitable return, or interest rate payable on a loan or capital investment. Related to time, quoted as a percentage it's the rate of upside from an investment.

Informal

How much did I make ? a) $100 invested, $110 back in 2 years = 10% total return b) $100 invested, $110 back in 12 months = 10% annual rate of return. Spot the difference? They are both 'Rates Of Return' but slightly different measures.

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At Shark Finesse we have created business case software to help you win budget and change the way you talk to customers about business value.
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