Glossary

Rate of return

What you earn on your investment as a percentage of the amount you invested. For example, if you by a house for $300,000, and it makes you $15,000 from rent each year (after all the running costs have been paid), the rate of return on your asset (the house) is 5% ($15,000 is 5% of $300,000).

Glossary: investment
Glossary: rate of return
Glossary: asset

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Here you'll find explanations of the many financial terms used throughout the Sorted website.