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rate of return vs ROI

ROI vs rate of return

rate of return and ROI both are nouns.

Word NounAdjectiveVerbAdverb
rate of return Yes No No No
ROI Yes No No No
As nouns, ROI is a hyponym of rate of return; that is, ROI is a word with a more specific, narrower meaning than rate of return:
  • rate of return: the amount returned per unit of time expressed as a percentage of the cost
  • ROI: (corporate finance) the amount, expressed as a percentage, that is earned on a company's total capital calculated by dividing the total capital into earnings before interest, taxes, or dividends are paid
Other hyponyms of rate of return include return on invested capital, return on investment.
rate of return (noun) ROI (noun)
the amount returned per unit of time expressed as a percentage of the cost (corporate finance) the amount, expressed as a percentage, that is earned on a company's total capital calculated by dividing the total capital into earnings before interest, taxes, or dividends are paid
Difference between rate of return and ROI

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