Holding Period Return Calculator
Calculate the total holding period return and annualized return for an investment including income (dividends) received.
Results
What is it?
Holding Period Return (HPR) measures the total return earned from an investment over its entire holding period, including price appreciation and income. The annualized return converts HPR into an equivalent yearly return for comparison across investments held for different durations.
How to use
Enter the beginning value (purchase price), ending value (sale price or current value), any income received (dividends, interest), and the holding period in years. The calculator outputs the total HPR and the annualized return.
Example scenario
You invested $10,000 and after 3 years the investment is worth $13,500, with $500 in dividends received. HPR = ($13,500 รขหโ $10,000 + $500) / $10,000 = 40%. Annualized return = (1.40)^(1/3) รขหโ 1 รขโฐห 11.87% per year.
Pro tip
The annualized return assumes returns compound evenly each year, which is rarely the case. For a more precise measure, use time-weighted return (TWR) or money-weighted return (IRR) if cash flows vary over time.