Definitions
In plain terms
A value increasing from 50 to 55 has a simple return of 10%.
Technical
For strictly positive comparable values, simple return equals ending value divided by starting value minus one and compounds multiplicatively across periods.
Scope
The value measure must declare whether it includes distributions, cash flows, fees, or FX.
Formula
r = V1 / V0 - 1r=V_1/V_0-1| Symbol | Meaning | Unit |
|---|---|---|
V0 | starting comparable value | value unit |
V1 | ending comparable value | value unit |
Output unit: decimal return
Examples
- A governed calculation records simple return with its exact basis, effective time, source, and units.
Common misconceptions
- Simple Return does not have one universal treatment without the applicable methodology, event terms, and data context.
Concept relationships
Contrasts with
Required by
Where this concept is used
Evidence and governance
- CRSP US Stock and Indexes Databases Data Descriptions Guide Center for Research in Security Prices · official platform documentation
Supports: preferred label, short definition, technical definition, formula
Limits: CRSP conventions, fields, codes, and licensed observations are provider-specific and are not reproduced as universal rules.
- Fintech Builder Glossary Definition Contract The Fintech Builder · internal governed contract
Supports: variant distinction
Limits: Defines governed platform behavior rather than claiming these policies are universally prescribed by external McClellan methodology.
- Reviewed by
- fintech-builder-owner-approved
- Last reviewed
- 2026-07-27
- Next review
- 2027-07-27
- Record status
- published