fincash logo SOLUTIONS

Fincash » Gross Rate of Return

Gross Rate of Return

Updated on July 12, 2024 , 5777 views

What is Gross Rate of Return?

Gross Rate of Return represents the return of investment before all the possible expenses and fees in a certain period of time. This rate is mostly used in calculating the return on Investing in marketing. It can differ from the rate of return realized after the expenses (gross profit rate). The gross rate of return on an investment is one measure of an investor’s profit. It typically includes Capital gains and any Income received from the investment.


The gross rate of return on an investment can be substantially different than the rate of return that is realized after expenses. For example, the gross return realized on a Mutual Fund that charges a 4.25 percent sales charge will be very different than the return realized after the charge has been deducted. Mutual Fund Houses are therefore required to publish or provide both returns to investors for this reason.

Gross rate of return is the total rate of return on an investment before the Deduction of any fees or expenses. The gross rate of return is quoted over a specific period of time, such as a month, quarter or year.

Ready to Invest?
Talk to our investment specialist
By submitting this form I authorize to call/SMS/email me about its products and I accept the terms of Privacy Policy and Terms & Conditions.

Gross Rate of Return Formula

A simple calculation of gross return can be derived from the following equation:

Gross Rate of Return = (Final Value – Initial Value) / Initial Value

All efforts have been made to ensure the information provided here is accurate. However, no guarantees are made regarding correctness of data. Please verify with scheme information document before making any investment.
How helpful was this page ?
Rated 4, based on 2 reviews.