HPR = (Ending Value + Income - Beginning Value) / Beginning Value × 100
Captures total return including both capital appreciation and income received.
Understanding the Inputs
What each parameter means
Beginning Value
Initial investment value when purchased.
Ending Value
Current or sale value at end of period.
Income
Dividends, coupons, or distributions received.
The Definitive Guide to Holding Period Return: Your Bottom Line
The simplest, most honest metric in finance. "Did I make money, and if so, how much?" It ignores time to focus on the raw absolute impact on your net worth.
Holding Period Return (HPR) is the total cumulative return earned on an asset over the period it was held. It combines both Price Appreciation (Capital Gains) and Income (Dividends/Interest).
It answers a simple question: "If I put in $1,000, what percentage of that $1,000 did I get back as profit?"
The Formula Breakdown
HPR = [ ( End Value + Income ) - Start Value ] / Start Value
Or simplified:
HPR = Total Profit / Total Invested
The "Total Return" Concept
Many investors ignore dividends. If you bought a stock at $100 and it is now $100, you might think your return is 0%. But if it paid $5 in dividends, your HPR is 5%. Always include income.
HPR vs. Annualized Return
HPR is an "Absolute Return." It tells you the magnitude of your gain but ignores the duration.
Investment A
HPR: 100% (Doubled your money)
Time: 2 Years
CAGR: ~41.4% (Great!)
Investment B
HPR: 100% (Doubled your money)
Time: 30 Years
CAGR: ~2.3% (Terrible, inflation likely ate it all).
Use HPR to measure wealth accumulation ("I made $50k"). Use CAGR to measure efficiency ("I earned 12% a year").
HPR for Short Selling
When shorting, you profit when prices fall. The math inverts.
Short HPR = ( Short Proceeds - Buyback Cost - Dividends Paid - Interest ) / Margin Posted
Notice a key risk: In a long position, the worst HPR is -100%. In a short position, HPR can be -Infinity (if the stock goes to the moon).
Limitations & Cash Flows
The standard HPR formula works for a single "Buy once, Sell once" scenario. It breaks if you:
Add Money: Depositing $5k into a $10k account makes the "End Value" jump, artificially inflating HPR if not adjusted.
Withdraw Money: Taking cash out lowers End Value, artificially depressing HPR.
For complex portfolios with cash flows, use Time-Weighted Return (TWR) or Money-Weighted Return (MWRR).
Frequently Asked Questions
Detailed answers about HPR
Does HPR account for inflation?
No. HPR is a nominal return measure. If your HPR is 10% over 5 years but inflation was 15% over that same period, you actually lost purchasing power despite the positive HPR. You must calculate "Real HPR" by subtracting inflation.
How does HPR differ from Yield?
Yield only measures income (Dividend Yield = Dividends / Price). HPR measures Total Return (Yield + Price Appreciation). A stock can have a 5% yield but a -10% HPR if the stock price drops 15%.
Can HPR be negative?
Yes. If your "End Value + Income" is less than your "Start Value," your HPR is negative. The maximum loss for a long position is -100% (bankruptcy).
Should I include reinvested dividends?
Yes. Reinvested dividends stay in the "Total Portfolio Value" (End Value). Do not double count them by adding them as "Income" AND including them in the End Value share count. Usually, looking at total account value is the easiest way to capture this.
How does leverage (Margin) affect HPR?
Leverage magnifies HPR. If you use 2x leverage (50% margin), a 10% asset move creates a 20% HPR on your equity. Leverage works both ways-it can wipe out your equity twice as fast.
Is HPR calculated before or after tax?
Standard HPR is Pre-Tax. To calculate "After-Tax HPR," you must subtract expected tax liabilities on realized gains and dividends from your numerator.
Can I calculate HPR for a house flip?
Absolutely. (Sale Price - Purchase Price - Renovation Costs - Carrying Costs) / Total Cash Invested. This is often called "Return on Investment" (ROI) in real estate, but mathematically it is HPR.
Portfolio vs. Single Asset HPR?
You can calculate HPR for a whole portfolio by using Total Portfolio Start Value and Total Portfolio End Value. Just be careful about deposits/withdrawals distorting the math.
Is HPR the same as Simple Return?
Yes. Simple Return and Holding Period Return are synonyms. They both measure the percentage change from A to B.
Summary
The HPR Calculator computes total return including capital gains and income over your investment period.
HPR is not annualized—use CAGR for comparing investments with different durations.
Essential for tracking trade performance and measuring actual investment results.
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Compute total holding period return including income.
How to use Holding Period Return (HPR) Calculator
Step-by-step guide to using the Holding Period Return (HPR) Calculator:
Enter your values. Input the required values in the calculator form
Calculate. The calculator will automatically compute and display your results
Review results. Review the calculated results and any additional information provided
Frequently asked questions
How do I use the Holding Period Return (HPR) Calculator?
Simply enter your values in the input fields and the calculator will automatically compute the results. The Holding Period Return (HPR) Calculator is designed to be user-friendly and provide instant calculations.
Is the Holding Period Return (HPR) Calculator free to use?
Yes, the Holding Period Return (HPR) Calculator is completely free to use. No registration or payment is required.
Can I use this calculator on mobile devices?
Yes, the Holding Period Return (HPR) Calculator is fully responsive and works perfectly on mobile phones, tablets, and desktop computers.
Are the results from Holding Period Return (HPR) Calculator accurate?
Yes, our calculators use standard formulas and are regularly tested for accuracy. However, results should be used for informational purposes and not as a substitute for professional advice.