When to use this calculator
Annualise a holding-period return for comparison across different durations. Uses a 365-day convention and assumes the period return can be expressed as a compounded equivalent.
Explore the investment return calculators for other questions in this topic. For a related calculation, use the Average Cost Per Share Calculator: Calculate a quantity-weighted average entry price across two purchases.
PUTTING IT INTO PRACTICE
Annualised Simple Return: a worked example
The values below are an illustrative example, not a recommendation. Replace them with measurements or assumptions that match your question.
| Input | Example value |
|---|---|
| Holding-period return (%) | 21 |
| Holding days | 730 |
| Result | 10 % per year |
- Check the input labels and enter the example values above.
- Apply the relationship: Annualised return (%) = ((1+holding return)^(365/days)−1) × 100.
- The result is 10 % per year, rounded for display.
How to interpret your result
Uses a 365-day convention and assumes the period return can be expressed as a compounded equivalent.
Return measures must cover the same time period before comparison. CAGR annualises two endpoint values but does not model interim cash flows. Current income yield differs from total return or yield to maturity.
Frequently asked questions
Can CAGR handle money added during the period?
The simple endpoint CAGR model does not account for intermediate deposits and withdrawals. Those require cash-flow-aware methods.
When is the annualised simple return calculator useful?
Annualise a holding-period return for comparison across different durations. Uses a 365-day convention and assumes the period return can be expressed as a compounded equivalent.
How do I use the annualised simple return calculator?
Enter holding-period return (%), holding days. The result updates automatically. Use the units shown beside each input; the example values illustrate the method.
Which formula does this calculator use?
Annualised return (%) = ((1+holding return)^(365/days)−1) × 100.
What should I check before using the result?
Uses a 365-day convention and assumes the period return can be expressed as a compounded equivalent.
How are results rounded?
Scalar numbers display up to six decimal places, with scientific notation for very large or small values. Text, fraction, date and schedule outputs use the format described on the tool. Intermediate calculations use JavaScript floating-point arithmetic. Keep sensible precision for your measurements.
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