Quickly calculate your Holding Period Return (HPR) to assess the total financial gain or loss from an investment over a specific duration. This essential metric includes capital appreciation, dividends, and interest, providing a clear picture of your investment's performance. Use our free online tool to simplify your investment analysis.
Formula:
The Holding Period Return (HPR) is a simple yet powerful metric that measures the total return an investor receives from an investment over a specific holding period. It accounts for both capital gains (or losses) and any income generated by the investment, such as dividends or interest.
The formula for calculating HPR is:
HPR = ( (Ending Value - Beginning Value + Income) / Beginning Value ) * 100
- Ending Value: The market value of the investment at the end of the holding period.
- Beginning Value: The initial market value or purchase price of the investment at the start of the holding period.
- Income: Any cash distributions received from the investment during the holding period (e.g., dividends, interest payments).
The result is expressed as a percentage.