This Holding Period Return Calculator helps you determine the total return on your investment over a specific period. By calculating both capital gains yield and dividend yield, it gives you a clear picture of the performance of your investment.

Use this tool to make informed decisions about your investment strategy and track the growth of your portfolio.

Holding Period Return Calculator

Holding Period Return Calculator

ⓘ The initial value of your investment.
ⓘ The final value of your investment after the holding period.
Capital Gains Yield: 0%
ⓘ The income received from dividends during the holding period.
Dividend Yield: 0%

How to use the Holding Period Return Calculator

Using the Holding Period Return Calculator is simple and efficient. Follow these steps to calculate the total return on your investment:

  1. Enter the Beginning Value of Your Investment: Input the initial amount of your investment at the start of the holding period. You can use the total invested capital or the purchase price of a single stock.
  2. Enter the Ending Value of Your Investment: Provide the value of your investment at the end of the holding period, whether it’s the total value or the sale price of a single stock. This will allow the calculator to compute your capital gains yield.
  3. Input the Dividend Income: If you received any dividends during the holding period, enter the total amount or the dividend income from a single stock. This will be used to calculate the dividend yield.
  4. View Your Results: As you input values, the calculator will dynamically update the capital gains yield and dividend yield. Once all fields are completed, click the “Calculate” button to see the total holding period return.

By following these steps, you can quickly determine how well your investment performed over the period, considering both price appreciation and dividends earned, whether for your entire portfolio or for a single stock.

Calculation and Formula

The Holding Period Return (HPR) is calculated by combining the capital gains yield and the dividend yield over the investment period.

The formula used in this calculator is:

\( \text{HPR} = \left( \frac{\text{Ending Value} – \text{Beginning Value}}{\text{Beginning Value}} \right) + \left( \frac{\text{Dividend Income}}{\text{Beginning Value}} \right) \)

Capital Gains Yield: This is calculated by dividing the difference between the ending value and the beginning value by the beginning value. It shows the percentage increase or decrease in the investment’s value.

Dividend Yield: This is determined by dividing the dividend income by the beginning value of the investment, showing how much return was earned from dividends during the holding period.

The two yields are added together to give the total Holding Period Return (HPR), representing the overall performance of your investment, accounting for both price appreciation and dividend income.

Example

Let’s walk through an example to illustrate how the Holding Period Return (HPR) is calculated.

Example:

  • Beginning Value of Investment: $1,000
  • Ending Value of Investment: $1,200
  • Dividend Income: $50

In this case, we have an initial investment of $1,000, an ending value of $1,200 after the holding period, and $50 received as dividend income during that period.

The Holding Period Return is calculated in two steps:

Step 1: Calculate the Capital Gains Yield

The capital gains yield is calculated using the formula:

\( \text{Capital Gains Yield} = \frac{\text{Ending Value} – \text{Beginning Value}}{\text{Beginning Value}} \)

 

Substituting the values:

\( \text{Capital Gains Yield} = \frac{1200 – 1000}{1000} = \frac{200}{1000} = 0.20 \, \text{or} \, 20\% \)

Step 2: Calculate the Dividend Yield

The dividend yield is calculated using the formula:

\( \text{Dividend Yield} = \frac{\text{Dividend Income}}{\text{Beginning Value}} \)

 

Substituting the values:

\( \text{Dividend Yield} = \frac{50}{1000} = 0.05 \, \text{or} \, 5\% \)

Step 3: Calculate the Holding Period Return

The Holding Period Return (HPR) is the sum of the capital gains yield and the dividend yield:

\( \text{HPR} = \text{Capital Gains Yield} + \text{Dividend Yield} \)

 

Substituting the values:

\( \text{HPR} = 0.20 + 0.05 = 0.25 \, \text{or} \, 25\% \)

 

Final Result: The total Holding Period Return for this investment is 25%, meaning the investment grew by 25% over the holding period when considering both capital appreciation and dividend income.


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