TRR: Total Return Rate

Definition of

TRR: Total Return Rate

TRR is a measure of the overall performance of an investment, taking into account both capital gains and income generated from the investment.

Detailed Description of

TRR: Total Return Rate

Total Return Rate (TRR) is a metric used in product management to measure the overall performance of a product. It is calculated by taking the total revenue generated from a product and dividing it by the total cost associated with producing, marketing, and selling that product. This metric helps product managers understand how well their products are performing in terms of profitability and return on investment. It can also be used to compare different products or versions of the same product to determine which one is more profitable. TRR can be used to identify areas for improvement or areas where additional resources may be needed to increase profitability.

Examples of

TRR: Total Return Rate

Consider an example of a stock that has a starting price of $10. After one year, the stock has increased in value to $15. The total return rate for this stock would be 50%, which is calculated by taking the difference between the ending price and the starting price ($15 - $10 = $5) and dividing it by the starting price ($5 / $10 = 0.50).

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