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100 FAQ's on Basic Finance

Module Units

What is Return?

Return is the gain or loss of an investment in a particular period which is expressed in terms of a percentage of the total amount.


The return on an investment can be calculated as follows:


Return = Amount Received - Amount Invested / Amount Invested


For example, 


An investor purchases property A, which is valued at ₹50 lakhs. Two years later, the investor sells the property for ₹90 lakhs.


Return = (90,00,0000 – 50,00,000) / (50,00,000) 
             = 80%

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Units 13/101