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Gross, Net, and Simple Return Rates

Gross, net, and simple return-rate terms used to compare investment performance before and after costs.

Gross, Net, and Simple Return Rates terms explain how investment results are measured, compared, annualized, compounded, distributed, or translated into yield language.

Use this branch when the question depends on the exact return formula, time period, reinvestment assumption, fee treatment, tax treatment, or income-versus-price return split.

Key Terms in This Branch

TermUse it for
Gross Rate of ReturnA measurement term for comparing investment income, growth, or total performance.
Net ReturnA measurement term for comparing investment income, growth, or total performance.
Simple Rate of ReturnA measurement term for comparing investment income, growth, or total performance.

What to Check

Check the formula, measurement period, compounding convention, cash-flow timing, reinvestment assumption, fees, taxes, currency, and whether the result is historical, expected, quoted, or realized.

Common Mistakes

  • Comparing returns from different periods or compounding conventions.
  • Treating quoted yield or expected return as the same as realized performance.
  • Ignoring fees, taxes, currency, reinvestment, and cash-flow timing.
  • Mixing income return, price return, and total return without labeling each measure.

This page is educational and does not recommend a specific investment strategy, security, tax treatment, or account choice.

In this section

Choose a subsection first. Deeper term pages live inside each subsection, which keeps large topic hubs readable.

Gross Rate of Return

Gross rate of return measures investment performance before fees, taxes, trading costs, and other deductions.

Net Return

Net return measures the investment gain or loss after fees, taxes, expenses, and other deductions are included.

Simple Rate of Return

Simple rate of return measures gain or loss relative to initial investment without compounding or time-weighting adjustments.

Revised on Sunday, June 21, 2026