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# Holding Period Return Calculator

## Holding Period Return Calculator

The Holding Period Return Calculator is used to calculate the holding period return (HPR) of an investment.

Holding period return is the total return received from holding an asset or portfolio of assets over a period of time, known as the holding period, generally expressed as a percentage. Holding period return is calculated on the basis of total returns from the asset or portfolio (income plus changes in value). It is particularly useful for comparing returns between investments held for different periods of time.

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## Online Holding Period Return Calculator Tool

Holding period return is thus the total return received from holding an asset or portfolio of assets over a specified period of time, generally expressed as a percentage. Holding period return is calculated on the basis of total returns from the asset or portfolio (income plus changes in value). It is particularly useful for comparing returns between investments held for different periods of time.

Starting on the day after the security’s acquisition and continuing until the day of its disposal or sale, the holding period determines tax implications. For example, Sarah bought 100 shares of stock on Jan. 2, 2023. When determining her holding period, she begins counting on Jan. 3, 2023. The third day of each month after that counts as the start of a new month, regardless of how many days each month contains.

If Sarah sold her stock on Dec. 23, 2023, she would realize a short-term capital gain or capital loss because her holding period is less than one year. If she sells her stock on Jan. 3, 2024, she would realize a long-term capital gain or loss because her holding period is more than one year.

## How to use Holding Period Return Calculator

In finance, holding period return (HPR) is a rate of return on an asset, investment or portfolio over a particular investment period. HPR is the sum of income and capital gains divided by the asset value at the beginning of the period, often expressed as a percentage. It is one of the simplest measures of investment performance.

#### Formula

The holding period return (HPR) calculation formula is as follows:

HPR = (Income + Ending Value – Beginning Value) / Beginning Value

## Benefits of Using Holding Period Return Calculator

Holding Period Return Calculator is a great tool that can help you make a better decision. This calculator shows you your holding period return (HPR) of an investment.

## Frequently asked questions about Holding Period Return Calculator

Here are some of the frequently asked questions….

### What is a Holding Period Return Calculator?

A Holding Period Return Calculator is a tool used to calculate the rate of return on an investment over a specific holding period. It helps investors determine how much their investment has grown or declined during the time they held it.

### How does a Holding Period Return Calculator work?

To use a Holding Period Return Calculator, you need to provide the initial investment amount, the final value of the investment at the end of the holding period, and Income received from Investment. The calculator then uses this information to calculate the percentage return on the investment.

### Is a Holding Period Return Calculator useful for comparing different investments?

Yes, a Holding Period Return Calculator is helpful for comparing the returns on different investments over specific holding periods. It enables you to assess which investment has performed better in terms of growth or decline.

### How is the Holding Period Return calculated?

The Holding Period Return is calculated using the following formula:

HPR = (Income + Ending Value – Beginning Value) / Beginning Value

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