Calculating your holding period return is straightforward once you know the Holding Period Return formula and what each input means. This guide explains the method in plain language, walks through a manual calculation, and gives worked examples you can follow — then you can do it instantly with the Holding Period Return Calculator.
What is Holding Period Return?
The Holding Period Return calculation tells you your holding period return from a few simple inputs. The figure you are solving for here is the holding period return, expressed in percent.
The Holding Period Return formula
The core formula is:
Holding period return = (Sale price - Purchase price + Income received (dividends, etc.)) ÷ Purchase price × 100Here is what each input means:
- Purchase price — a money amount. Example: ₹1,000.
- Sale price — a money amount. Example: ₹1,200.
- Income received (dividends, etc.) — a money amount. Example: ₹50.
How to calculate it step by step
- Write down the purchase price (for example, ₹1,000).
- Write down the sale price (for example, ₹1,200).
- Write down the income received (dividends, etc.) (for example, ₹50).
- Apply the formula above to get your holding period return.
- Double-check the result with the Holding Period Return Calculator.
Worked examples
Example 1
| Input / Output | Value |
|---|---|
| Purchase price | ₹1,000 |
| Sale price | ₹1,200 |
| Income received (dividends, etc.) | ₹50 |
| Holding period return | 25.00% |
With purchase price of ₹1,000, sale price of ₹1,200 and income received (dividends, etc.) of ₹50, the holding period return works out to 25.00%.
Example 2
With purchase price of ₹2,000, sale price of ₹1,200 and income received (dividends, etc.) of ₹50, the holding period return works out to -37.50%.
| Result | Value |
|---|---|
| Holding period return | -37.50% |
Example 3
With purchase price of ₹500, sale price of ₹1,200 and income received (dividends, etc.) of ₹50, the holding period return works out to 150.00%.
| Result | Value |
|---|---|
| Holding period return | 150.00% |
Tips for an accurate result
- Keep your units consistent — mixing, say, months with years or grams with kilograms is the most common source of error.
- Round only at the very end. Rounding inputs early can shift the final answer noticeably.
- Re-run the numbers whenever an input changes, rather than estimating from an old result.
- Annual rates must be converted to the period you are calculating for (for example, divide an annual rate by 12 for a monthly figure).
Prefer not to do the maths by hand? — the Holding Period Return Calculator does it instantly, for free, with the formula and a worked example built in.
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