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Showing posts with the label annualized returns

### How to Calculate Annualized Return on Investments

How to Calculate Annualized Return on Investments ? Previously, we had discussed about the Absolute Return on Investment , to calculate how our Invested money performing and seen how it differ from in terms of rupees as Absolute. Here, we can see to calculate the Annualized Returns on our Investments. Annualized Return can be computed as Percent (% p.a) per Annum. We can measure the returns by these method, is the better and accepted way to measuring the Investment Return. The basic purpose of Annualized Return is to standardize the investment period as though each investment was made only for One year. It helps to ease comparison of investments across Time periods. Annualized Returns can be denoted as [ % p.a ], otherwise, it is usually an Absolute Non-annualized return.  Annualized Return on Investment: (Return on Investment / Original Investment) X 100 X (1 / Holding period of investment in years) Or in simple terms,  ((End value - Beginning value) / Beginning value)  X 100 X (1 / H