Investment

Holding Period Return Calculator

Total return over a holding period, split into the capital gain and the income yield that produced it.

What you paid, what you sold for, and what it paid you meanwhile

The two prices

Price paid per unit, in your local currency.

Price received per unit, in your local currency.

Income received while holding

Dividends or interest per unit during the holding.

Holding Period Return

25.00%

Total return from price change plus income.

Formula verified 12 September 2026

Capital Gain

20.00%

Return from the price change alone.

Income Yield

5.00%

Return from income relative to purchase price.

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Projection only — not investment advice; returns are not guaranteed. Read the full disclaimer ↓

Return Sources: Capital Gain vs Income

Add your numbers to see the visual breakdown.

Estimates only — not financial, tax, or professional advice.

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What it calculates: Holding Period Return, Capital Gain, Income Yield.

Updated 5 June 2026 · Transparent assumptions

The capital gain and the income yield are separate returns on the same position

Buying at 100, selling at 120 and collecting 5 of income gives a total return of 25 on 100 — 25%. The split matters: 20 points came from the price rising and 5 from dividends, interest or rent that arrived whether or not the price moved.

Separating them tells you what kind of asset you held. A bond delivers most of its return as income; a growth stock delivers almost all of it as capital gain; a REIT or a high-yield equity sits between. Two investments with identical total returns and opposite splits behave completely differently in a portfolio and are taxed differently too.

25% over six months and 25% over six years are the same number here

Holding period return is deliberately period-agnostic. It measures the total return over however long you held, and makes no attempt to express it as an annual rate. That is a feature when comparing a single completed investment against its own cost, and a serious limitation when comparing two investments held for different lengths.

For that comparison you need annualising: raising the growth multiple to the power of one over the number of years. A 25% total return over six months annualises to about 56%; over six years it is 3.79% a year. Same headline figure, entirely different investments, which is why the annualised return calculator exists alongside this one.

The simple calculation assumes it sat in cash

This calculation adds income to the capital gain without compounding it, which implicitly assumes dividends were taken and held rather than reinvested. For a long holding period that understates the outcome substantially — reinvested dividends have historically accounted for a large share of total equity returns over multi-decade spans.

Published total-return indices assume full reinvestment at the ex-dividend date, which is why a total-return series diverges so far from a price index over time. If you reinvested, the honest comparison is against a total-return benchmark and the figure here is a floor.

Costs, taxes and the money you added along the way

The purchase price should include commissions and any acquisition cost, and the selling price should be net of transaction costs. For property, stamp duty, legal fees and agent commission can consume several percent in each direction and turn an apparent gain into a loss.

Tax is outside the calculation and differs by component: income is usually taxed at one rate and capital gains at another, often depending on how long you held. And if you added to the position during the holding period, a single purchase price no longer describes it — that is what XIRR is for.

Sources & References

Figures on this page are checked against primary, authoritative sources. Links open in a new tab.

Related Calculators

Annualized ReturnThe compound annual rate behind a total return, with the growth multiple alongside it.
Dividend YieldCurrent yield, yield on cost, and projected annual income from your share count.
ROISimple, date-based, and net ROI with annualised ROI (CAGR), a reverse target solver, and a two-investment comparison.
InvestmentProject lump-sum and regular-contribution growth, plan a goal, and solve future vs present value, with fees and inflation.

More in Investing, or browse all calculators.

Investment disclaimer

Returns are assumptions, not guarantees. Actual results may vary because of market performance, taxes, fees, inflation, and timing. This is an educational projection, not investment advice.

How we calculate · Found an error? email us

Authorship & verification

Written and maintained by , a business operator who builds spreadsheet-based calculators.

What's changed (2 updates)

Published 12 September 2026

  1. Published the calculator with its formula, worked example, assumptions, limitations and a bespoke guide, and added an automated formula test suite covering it.
  2. Tested that the capital and income components always reconcile to the total return, so the split cannot drift from the headline figure.

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