Enter the total income, initial value, and final value into the calculator. The calculator will evaluate and display the holding period return.
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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 it’s income generation.
Holding Period Return Example
How to calculate a holding period return?
- First, determine the income.
Calculate the income generated from the investment.
- Next, determine the final value.
Measure the final value of the investment.
- Next, determine the initial value.
Calculate the initial value of the investment.
- Finally, calculate the holding period return.
Use the equation above to calculate the return.
A holding period return is a total return on an investment generated over a given holding period.