Gross, Net, and Simple Return Rates

Gross, net, and simple return pages explain how cost treatment and calculation convention change reported performance.

This subsection keeps return-rate definitions separate from total-return and advanced metrics.

In this section

• Gross Rate of Return: Investment Return Before Fees, Taxes, and Other Deductions
  Learn what gross rate of return means, how it differs from net and real return, and why gross performance can overstate what investors actually keep.
• Net Return: The Profit from an Investment After All Expenses Have Been Deducted
  Net Return is the measure of profitability for investments after accounting for all expenses. It represents the actual gain or loss that an investor makes from an investment. Net Return is a critical metric in assessing the effectiveness and efficiency of investment performance.
• Simple Rate of Return: A Quick Return Measure Without Compounding
  Learn how the simple rate of return measures gain relative to the initial investment and why it is useful for rough comparisons but limited over time.