“Return rate” refers to the overall percentage gain or loss on an investment over a period of time — not the method by which interest is calculated. It measures performance, not process. While compound interest may contribute to a higher return rate over time, the term itself doesn’t define how the interest accrues. For example, an investment might yield a 10% return in a year due to market gains or dividend payouts, but that doesn’t necessarily mean the return came from compounding. Mixing up these terms could cause confusion when analyzing investments. The key takeaway: compound interest is the method, while return rate is the outcome. Understanding both concepts helps you become a smarter investor and avoid misjudging the real growth potential of your money.