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
| Field | What to enter |
|---|---|
| Bought price | Amount in your currency |
| Current price | Amount in your currency |
| Dividend income per share | Amount in your currency |
| Holding period | Units: 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 price | Holding period return (%) |
|---|---|
| 20 | 138 |
| 30 | 58.67 |
| 40 | 19 |
| 50 | -4.8 |
| 60 | -20.67 |
| 80 | -40.5 |
Formula
HPR = (ending price − starting price + income) ÷ starting priceCapital gains yield = (P₁ − P₀) ÷ P₀; dividend yield = income ÷ P₀Annualized HPR = (1 + HPR)^(1 ÷ years) − 1Worked 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 %.
Frequently asked questions
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.