# Holding Period Return Calculator

URL: https://speedycalculator.com/calculators/finance/holding-period-return/
Last updated: 2026-10-25

> The holding period return calculator works out the total return on an investment over the time you held it – price change plus dividends or interest – split into capital gains yield and income yield, and annualized.

## Inputs

- Bought price
- Current price
- Dividend income per share
- Holding period (years, months)

## Results

- Capital gains yield
- Dividend yield
- Holding period return
- Annualized holding period return

## Formula

```
HPR = (ending price − starting price + income) ÷ starting price
Capital gains yield = (P₁ − P₀) ÷ P₀; dividend yield = income ÷ P₀
Annualized HPR = (1 + HPR)^(1 ÷ years) − 1
```

## Explanation

Holding period return is the simplest measure of how an investment performed. Annualizing it lets you compare investments held for different lengths of time.

### How to use the Holding Period Return Calculator

- **Bought price**
- **Current price**
- **Dividend income per share**
- **Holding period**

Results update as you type, and every field accepts the units shown in its menu.

### How it works

Enter the price you bought at, the current or selling price, the dividends or interest received per share and the holding period.

### Tips

- Use the nominal annual rate and pick the compounding frequency your bank or broker states.
- Small differences in return or fees compound into large differences over decades.
- Run the calculation with a cautious, a central and an optimistic return to see the range of outcomes.
- Past returns do not guarantee future returns – nothing here is investment advice.

### Common mistakes to avoid

- Comparing an APR with an APY or effective rate.
- Ignoring inflation, taxes and fees when judging a real return.
- Entering a percentage as a decimal (5 instead of 0.05 is correct here).

### Inputs explained

FieldWhat to enterBought priceAmount in your currencyCurrent priceAmount in your currencyDividend income per shareAmount in your currencyHolding periodUnits: years, months

### What each result means

- **Capital gains yield** = ([Current price] - [Bought price])÷[Bought price]×100
- **Dividend yield** = [Dividend income per share]÷[Bought price]×100
- **Holding period return** = [Capital gains yield] + [Dividend yield]
- **Annualized holding period return** = ((1 + [Holding period return]÷100)^(1÷[Holding period]) - 1)×100

### Example values

How the main result changes when **Bought price** changes and everything else stays at the example values above:

Bought priceHolding period return (%)201383058.67401950-4.860-20.6780-40.5

## Worked example

Inputs — Bought price: $40; Current price: $46; Dividend income per share: $1.6; Holding period: 1.5 years.

Results — Capital gains yield = 15 %; Dividend yield = 4 %; **Holding period return = 19 %**; Annualized holding period return = 12.3 %.

## FAQ

**What is holding period return?**
The total return earned while holding an investment, including income.

**How is it annualized?**
Raise (1 + HPR) to the power 1/years and subtract 1.

**Does HPR include dividends?**
Yes – that's what makes it a total return.

**What formula does the Holding Period Return Calculator use?**
HPR = (ending price − starting price + income) ÷ starting price.