Holding Period Return Calculator: Measure Multi-Period Investment Performance
Holding-period return (HPR) shows the exact percentage gain or loss you earned over every period you held an asset. Enter each period’s decimal return, press “Calculate,” and the tool multiplies them, subtracts one, and displays your cumulative result. A 2 %, −1 %, 3 % sequence, for example, compounds to 4.01 %. U.S. stocks have delivered roughly 10 % average annual returns since 1926 (Morningstar, 2023).
Holding Period Return Calculator
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How to use the tool
Enter period returns: Type each return as a decimal, separated by commas. Example 1: 0.02, -0.01, 0.03. Example 2: 0.015, 0.007, -0.006, 0.012.
Click “Calculate”: The script multiplies each term’s growth factor (1 + r).
Read your result: The displayed percentage is your compounded Holding-Period Return.
Formula endorsed by CFA curriculum (CFA Institute, 2020).
Input range: –1.00 to +10.00 accommodates losses to 1,000 % gains (FINRA, 2022).
Average annual U.S. stock return ≈ 10 % (Morningstar, 2023).
HPR aids cross-period comparison of assets (Investopedia, https://www.investopedia.com/terms/h/holdingperiodreturn.asp).
FAQs
What is a holding-period return?
Holding-period return is the percentage change in value, including reinvested income, from the moment you buy an asset until you sell it (Investopedia, https://www.investopedia.com/terms/h/holdingperiodreturn.asp).
How does the calculator compound returns?
It converts each decimal return to a growth factor (1 + r), multiplies all factors, then subtracts one to reveal the net compound change (CFA Institute, 2020).
Which decimal format should I use?
Enter 5 % as 0.05 and −2 % as –0.02. Values above 1 or below –1 invalidate the math because growth factors must stay positive (FINRA, 2022).
Can the result be negative?
Yes—if the compounded product is under one, subtracting one yields a negative HPR, signalling a loss (SEC Investor.gov, https://www.investor.gov).
When you add reinvested dividends or coupons into each period’s return, HPR automatically folds them into the compound result (CFA Institute, 2020).
How do I annualise HPR?
Use $$ (1+HPR)^{ rac{1}{t}} – 1 $$ where t equals years held; this normalises multi-year returns for easy comparison (Investopedia, Annualized Return).
What’s an expert view on HPR?
“Holding-period return captures total performance, including reinvestment effects, and is essential for portfolio evaluation” — CFA Program Curriculum (CFA Institute, 2020).
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