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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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