A gross return is the return before any fees, expense, taxes, etc. A net return is the return after deducting all fees and expenses from the gross return.

Gross returns are useful in comparing managerial performance before the impact of fees, but net returns are more accurate measures of what investors have actually earned.

both gross and net return measures are generally reported on a pre-tax basis. Different types of investments generate different types of income and have different tax implications. For example, in the U.S. the interest income is fully taxable at an investor's marginal tax rate while capital gains are taxed at a much lower rate. Therefore, many investors therefore use the after-tax return to evaluate mutual fund performance.

The nominal return and the real return are two ways to measure how well an investment is performing. The real return takes into consideration the effects of inflation when calculating how much buying power has changed.

An investor can also use leverage to amplify his expected return (and risk). Because the borrowed funds must be repaid, the rate of return for a leveraged portfolio is only based on the investor's own money:

R_L = Portfolio return / Portfolio equity = R_P + V_B (R_P - r_D) / V_E

In order to benefit from leverage, investors must generate portfolio returns in excess of the borrowing rate.