About Holding Period Return Calculator (Formula)
A Holding Period Return (HPR) Calculator is an online tool that allows you to calculate the total return on an investment over a specific period, considering both the income received and any changes in the value of the investment.
The calculator typically requires the user to input the beginning value of the investment, the ending value of the investment, and any income received from the investment during the holding period.
The holding period return (HPR) is a measure of the total return earned by an investment over a given period of time, which takes into account any income received and changes in the value of the investment. The HPR formula is as follows:
HPR = (Income + Ending Value – Beginning Value) / Beginning Value
Where:
- Income: is any income earned from the investment during the holding period, such as interest, dividends, or capital gains distributions.
- Beginning Value: is the initial value of the investment at the start of the holding period.
- Ending Value: is the final value of the investment at the end of the holding period.