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Finance

Annualised Return

By Sitraka Forler · Lecturer, Durham Business SchoolUpdated 13 September 2026 About this site

Return expressed as a yearly rate, regardless of holding period.

Converts a multi-period return into an equivalent annual figure for comparison. A 50% return over 3 years annualises to roughly 14.5% per year using compounding.

Example

ann_return = (1 + total_return) ** (252 / n_days) − 1

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