What is the difference between a dollar return and percentage return?

A dollar return measures the absolute profit or loss from an investment in monetary terms, reflecting the actual amount gained or lost. In contrast, a percentage return expresses this gain or loss as a fraction of the initial investment, allowing for easier comparison across different investments or time periods. While the dollar return provides a specific figure, the percentage return offers a relative measure of performance. Both are useful for assessing investment success, but they serve different purposes in financial analysis.