How do I calculate the holding period return?
Holding period return is an important metric to help investors measure their returns on an investment. It is calculated by taking the total return earned on the asset or portfolio over the time it is held, expressed as a percentage. This can be easily calculated using the following formula:
Holding Period Return = [(Ending Value - Beginning Value + Dividends + Interest) / Beginning Value] x 100. Investors can use spreadsheet programs such as Sourcetable to easily calculate their holding period return.