[Glossary](https://pecuvo.eu/en/glossary/) · Investing # Return (yield) **In short:** return is how much an investment has gained (or lost) over a period, expressed as a percentage of the amount invested — from the change in price plus any income received. **Simply put:** The formula is (new value − old value) / old value × 100. The nominal return is the one written down; the real return is what remains after inflation. A higher expected return usually comes with higher risk. Past returns do not promise future ones. **Example:** You buy a unit for €1,000. A year later it is worth €1,050 and you have received €20 of income. The return is (1,050 + 20 − 1,000) / 1,000 = **7%**. If inflation is 3%, the real return is about (1.07 / 1.03) − 1 ≈ **3.9%**. **Watch out:** losses and gains are not symmetrical. A 20% fall needs a 25% rise to get back to the start; a 50% fall needs a 100% rise. **Source:** EU/OECD-INFE (2022), competences 182, 186 — https://finance.ec.europa.eu/publications/commission-and-oecd-infe-publish-joint-framework-adults-improve-individuals-financial-skills_en ## In depth in the modules - [Module 24](https://pecuvo.eu/en/modules/investing-the-basics/) - [Module 29](https://pecuvo.eu/en/modules/sustainable-finance/) - [Module 3](https://pecuvo.eu/en/modules/assets-and-cash-equivalents/) ## Related terms - [Investing](https://pecuvo.eu/en/glossary/investing/) - [Real and nominal interest rate](https://pecuvo.eu/en/glossary/real-interest-rate/) - [Inflation](https://pecuvo.eu/en/glossary/inflation/) - [Compound interest (compounding and capitalisation)](https://pecuvo.eu/en/glossary/compound-interest/) - [Fund fees and costs](https://pecuvo.eu/en/glossary/fund-fees/) - [Dividend](https://pecuvo.eu/en/glossary/dividend/) - [Capital gain](https://pecuvo.eu/en/glossary/capital-gain/)