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Financial encyclopediaReviewed 2026-10-23

Annual Return

An annual rate of return is the profit or loss on an investment over a one-year period. There are many ways of calculating the annual rate of return. If the rate of return is calculated on a monthly basis, multiplying it by 12 expresses an annual rate of return. This is often called the annual percentage rate (A.P.R.).

Sources and references ↗
PROFILE / FACT FILE

Concept at a glance

Term
Annual Return [1]
Subject area
Investor.gov glossary [1]
Jurisdiction / scope
US regulatory and investor-education context [1]
Primary reference
SEC · Investor.gov [1]

Definition and explanation

An annual rate of return is the profit or loss on an investment over a one-year period. There are many ways of calculating the annual rate of return. If the rate of return is calculated on a monthly basis, multiplying it by 12 expresses an annual rate of return. This is often called the annual percentage rate (A.P.R.). [1]

Source-supported connections

Annual Return → Mentioned in the official explanation → Profit [1]

Frequently asked questions

What does Annual Return mean in the cited reference?

An annual rate of return is the profit or loss on an investment over a one-year period. There are many ways of calculating the annual rate of return. If the rate of return is calculated on a monthly basis, multiplying it by 12 expresses an annual rate of return. This is often called the annual percentage rate (A.P.R.). [1]

RELATION MAP

Annual Return connection map

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Annual Return

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Links retain their source-specific meaning. Award-time affiliations and links to related reading are not claims about current appointments or economic causation.

Sources and review dates

  1. US SEC · Investor.gov — Annual Return ↗

Reviewed 23 October 2026. Historical dates and award-time affiliations retain their original context. A review date is not an event date. Background sources are identified separately from official records.

Content preparation: source-based compilation with AI assistance. See methods and attribution. Named sources identify the underlying records; no individual expert review is claimed.