Holding Period Yield Calculator
Holding Period Yield Calculator
The Holding Period Yield Calculator is used to calculate the holding period return (HPR) of an investment.
Holding period yield 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 yield 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.
You may also like to use Holding Period Return Calculator.
How to use Holding Period Yield Calculator
In finance, holding period yield (HPY) is a rate of return on an asset, investment or portfolio over a particular investment period. HPY 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 yield (HPY) calculation formula is as follows:
HPY = (Income + Ending Value – Beginning Value) / Beginning Value
Benefits of Using Holding Period Yield Calculator
Holding Period Yield Calculator is a great tool that can help you make a better decision. This calculator shows you your holding period yield (HPY) of an investment.
Frequently asked questions
Here are some of the frequently asked questions…
What is a Holding Period Yield Calculator?
A Holding Period Yield Calculator is a tool used to calculate the yield or rate of return earned on an investment over a specific holding period. It helps investors understand the effective annualized return.
How is the Holding Period Yield calculated?
The Holding Period Yield is calculated using the following formula:
HPY = (Income + Ending Value – Beginning Value) / Beginning Value
Is a Holding Period Yield Calculator useful for comparing different investments?
Yes, a Holding Period Yield Calculator is useful for comparing the effective annualized yields of different investments over specific holding periods. It helps you evaluate which investment has provided a higher return considering the timing of cash flows.
Are Holding Period Yield Calculators accurate for all investment scenarios?
Holding Period Yield Calculators provide accurate results based on the data you input.