Enter the total income, initial value, and final value into the calculator. The calculator will evaluate and display the holding period return.

Holding Period Return Formula

The following formula is used to calculate a holding period return.

HPR = I + (FV-IV) / IV

  • Where HPR is the holding period return
  • I is the income generated from the investment
  • FV is the final value
  • IV is the initial value

Holding Period Return Definition

A holding period return is the simplest way to analyze return on investments. It’s a simple calculation of the return an investment gives over a given period of time including its income generation.

Holding Period Return Example

How to calculate a holding period return?

  1. First, determine the income.

    Calculate the income generated from the investment.

  2. Next, determine the final value.

    Measure the final value of the investment.

  3. Next, determine the initial value.

    Calculate the initial value of the investment.

  4. Finally, calculate the holding period return.

    Use the equation above to calculate the return.


What is a holding period return?

A holding period return is a total return on an investment generated over a given holding period.

holding period return calculator
holding period return formula