Holding Period Return Calculator

Holding Period Return (HPR) is the total return earned on an investment over the entire period it was held. It accounts for both capital appreciation (change in price) and any income received, such as dividends or interest, expressed as a percentage of the initial investment value.

The HPR formula is: HPR = [Income + (Ending Value − Beginning Value)] ÷ Beginning Value. For example, if you bought a stock for $100, it's now worth $120, and you received $5 in dividends, your HPR = ($5 + $20) / $100 = 25%.

Capital Gains Yield measures the return from price appreciation alone (ending price minus purchase price, divided by purchase price). Dividend Yield measures the return from income received (dividends or interest divided by purchase price). Together, they sum to the total HPR.

Annualized HPR converts the total holding period return into an equivalent annual rate, making it easier to compare investments held for different lengths of time. The formula is: Annualized HPR = (1 + HPR)^(1/t) − 1, where t is the number of years held.

They are very similar. The rate of return expresses the gain or loss on an investment as a percentage of the initial cost. HPR specifically emphasizes the total return over the defined period you held the asset, including both price changes and income. The two terms are often used interchangeably.

Yes. If the ending value of the investment is significantly lower than the initial value and the income received is not enough to offset the loss, the HPR will be negative. This indicates the investment lost money over the holding period.

HPR gives you a complete picture of investment performance by combining price changes and income into a single metric. It helps you compare the performance of different assets, evaluate whether an investment met your goals, and make more informed buy or sell decisions.

The holding period is the length of time an investor owns a security or asset — from the date of purchase to the date of sale or valuation. It can range from days to many years and directly affects calculations like annualized return and tax treatment of gains.