Legal Definitions - net return

Definition: The profit earned on an investment after subtracting all investment expenses.

Examples:

• If you invest $1000 in a stock and earn $1200 after deducting all expenses, your net return is $200.
• A real estate investor buys a rental property for $200,000 and earns $20,000 in rental income after deducting all expenses. The net return on the investment is 10%.

These examples illustrate how net return is calculated by subtracting all expenses from the total profit earned on an investment. It is an important metric for investors to evaluate the profitability of their investments.