Holding Period Return (HPR) Calculator
Calculate the total return on an investment over the specific period it was held. This includes capital appreciation and any income received during the holding period.
Understanding Holding Period Return (HPR)
The Holding Period Return (HPR) is the total return received from holding an asset or portfolio of assets over a specified period, known as the holding period. It is typically expressed as a percentage of the initial investment.
HPR accounts for two sources of return:
- Capital Appreciation: The increase (or decrease) in the asset’s price over the holding period.
- Income: Any cash flows received from the asset during the holding period, such as dividends (for stocks) or interest payments (for bonds).
HPR Formula
The formula to calculate Holding Period Return is:
HPR = [ (Ending Value – Beginning Value) + Income ] / Beginning Value
Where:
- Ending Value (P1): The price of the investment at the end of the holding period.
- Beginning Value (P0): The initial price of the investment at the start of the holding period.
- Income (D): Any dividends or interest received during the holding period.
The result is often multiplied by 100 to express it as a percentage.
How to Use This Calculator
- Enter the Initial Investment Price: This is the amount you originally paid for the asset.
- Enter the Selling Price: This is the price at which you sold the asset, or its current market value if you still hold it and want to calculate unrealized HPR.
- Enter Income Received: Include any dividends, interest, or other cash distributions received from the investment during the time you held it. If none, enter 0.
- Click “Calculate HPR”: The calculator will display your Holding Period Return as a percentage.
A positive HPR indicates a profit, while a negative HPR indicates a loss on the investment over the holding period.