Holding Period Return Calculator
Holding period return is the simplest complete measure of how an investment performed: it combines the change in value with any income received, expressed as a percentage of what you originally put in. This calculator takes the beginning value, the ending value, the total income received, and the length of the holding period, then returns the total holding period return and the annualized equivalent so you can compare it fairly with investments held over different timeframes. Every figure is your own investment data.
Holding period return formula
Total gain = ending value - beginning value + income
Holding period return = total gain / beginning value
Annualized return = (1 + HPR)^(1 / years) - 1
HPR is the total percentage return for the whole period. The annualized figure compounds it to a per-year rate; if the holding period is one year the two are equal.
Using holding period return
- HPR captures both income and capital change in a single figure.
- Always include dividends, interest, or rent to avoid understating return.
- The total return can be positive even if the price fell, when income is large enough.
- Annualizing lets you compare investments held for different lengths of time.
- For one-year holding periods, the HPR and the annualized return are identical.
Holding period return: frequently asked questions
What is holding period return?
Holding period return (HPR) is the total return earned on an investment over the entire time it was held, combining both income (like dividends or interest) and the change in price. It is expressed as a percentage of the amount originally invested and is not annualized.
What is the holding period return formula?
HPR = (ending value - beginning value + income) / beginning value. The numerator is the total gain (price change plus income received), and dividing by the beginning value expresses it as a percentage of capital invested.
How do you annualize a holding period return?
Annualized return = (1 + HPR)^(1 / years) - 1, where years is the holding period in years. This compounds the total return to a yearly equivalent so you can compare investments held for different lengths of time on a like-for-like basis.
Why is annualizing important?
A 20 percent return over five years is very different from 20 percent over five months. Annualizing converts a total return into a per-year rate, allowing fair comparison across investments with different holding periods. Without it, longer-held investments can look better than they really are.
Does HPR include income?
Yes. A correctly measured holding period return adds all cash income received during the period, such as dividends, coupons, or rent, to the capital gain. Ignoring income understates the true return. Enter total income received over the period in the income field.
Official sources
- U.S. Securities and Exchange Commission: Total return.
- U.S. Securities and Exchange Commission: Compound interest.
Reviewed by the CalculatorHub team, edited by James Graham, 16 June 2026. See our methodology.