Holding Period Return Calculator

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Beginning Price ($)

Ending Price ($)

Income Received ($)

Results

Holding Period Return

15%

total return over the holding period

Return (decimal)	0.15
Capital Gain ($)	100
Income Received ($)	50

What Is Holding Period Return?

Holding Period Return (HPR) measures the total return earned from holding an investment over a specific period. It captures both the income generated (such as dividends, interest, or coupons) and the capital gain or loss (the change in market price). Because it combines both sources of return, HPR gives a complete picture of how an investment performed regardless of how long it was held.

How to Use This Calculator

Enter three values: the beginning price you paid for the investment, the ending price (its value when you sold or measured it), and any income you received during the period. The calculator returns your total return both as a percentage and as a decimal, and breaks out the capital gain and income components so you can see what drove the result.

The Formula Explained

The formula is $$\text{HPR} = \frac{\text{Income} + \left(P_{\text{end}} - P_{\text{begin}}\right)}{P_{\text{begin}}} \times 100\%$$ The numerator is your total dollar gain — income plus the price appreciation. Dividing by the beginning price expresses that gain relative to what you originally invested. Multiply by 100 to convert the decimal to a percentage.

Holding period return combines capital gain and income relative to the starting price.

Worked Example

Suppose you buy a stock for $1,000, receive $50 in dividends, and later sell it for $1,100. The capital gain is \(\$1{,}100 - \$1{,}000 = \$100\). Adding the $50 income gives a total gain of $150. Dividing by the $1,000 beginning price gives $$\frac{50 + (1100 - 1000)}{1000} = 0.15 = 15\%$$ or a 15% holding period return.

A holding period from purchase to sale, with income received along the way.

FAQ

Does HPR account for the length of time? No. HPR is a total return over the whole period. To compare across different time spans, annualize it.

What counts as income? Any cash received while holding the asset — dividends, interest, coupons, or distributions.

Can HPR be negative? Yes. If the ending price plus income is less than the beginning price, the HPR is negative, indicating a loss.