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How to use Annualized Return Calculator

Enter your buy value, sell value, any income received and the number of days held. The calculator shows the holding period and annualized return.

Frequently asked questions

What is holding period return?

It is the total percentage gain over the time you held an investment: (sell value + income − buy value) / buy value × 100, regardless of how long you held it.

How is the annualized return calculated?

The holding period return is scaled to a yearly rate using (1 + HPR)^(365/days) − 1, so investments held for different durations can be compared fairly.

Why annualize returns?

A 10% gain in 6 months is far better than 10% over 3 years. Annualizing puts every investment on the same yearly basis so comparisons are meaningful.

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