Holding Period Return
Calculator
Results
- Holding period return
- 17%
Results
| Holding period return | 17 |
formula-map diagram
- Holding period return
- 17%
Formula breakdown
Formula
HPR = (Ending value + Income − Beginning value) ÷ Beginning value= 17
Note
This is a simplified financial model for educational purposes and does not constitute financial advice.
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See all →Frequently asked questions
What does holding period return measure?+
It's the total return earned on an investment over the entire time you held it, including both price appreciation and any income received like dividends or interest, expressed as a single percentage regardless of how long the period was.
How is holding period return different from an annualized return?+
Holding period return reflects the total gain over the whole span held, without adjusting for time, while annualized return converts that same total into an equivalent yearly rate, making it more useful for comparing investments held for different lengths of time.
Does the calculator include dividends and interest, or just price change?+
It should include any income received during the holding period alongside the price change, since ignoring dividends or interest would understate the true return earned on income-generating investments.
Why might two investments with the same holding period return not be equally good?+
If one was held for six months and the other for three years, they earned the same total return over very different time frames, meaning the shorter-held investment actually generated a much higher rate of return per year.
Can holding period return be negative?+
Yes, if the ending value plus any income received is less than the original investment, the holding period return will be negative, reflecting an overall loss on the position for the time it was held.