• Rate of return (RoR) is used to measure the profit or loss on an investment over time.

  • The RoR metric can be used for a variety of assets, from stocks to bonds, real estate and art.
  • The effect of inflation is not taken into account when calculating the simple rate of return, but is taken into account when calculating the real rate of return.
  • Internal rate of return (IRR) takes into account the time value of money.