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rate of return vs return on investment

return on investment vs rate of return

rate of return and return on investment both are nouns.

Word NounAdjectiveVerbAdverb
rate of return Yes No No No
return on investment Yes No No No
As nouns, return on investment is a hyponym of rate of return; that is, return on investment 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
  • return on investment: (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, ROI.
rate of return (noun) return on investment (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 return on investment

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