How this calculator works
A periodic percentage describes one interval. Annualization assumes that same return repeats and all gains stay invested. Choose the interval first, then either annualize it or reverse the calculation. A weekly year has 52 intervals and a daily year has 365 in this tool; these are stated modelling conventions, not calendar forecasts.
Formula
Annual return = (1 + periodic return)^m - 1. Periodic return = (1 + annual return)^(1/m) - 1. Here m is periods per year and rates are fractions.
Worked example
A 10% quarterly return compounds to 46.41% annually. A 12.682503% annual return corresponds to 1% per month.
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Frequently asked questions
Why not multiply the periodic return by the frequency?
Multiplication gives a simple annual rate. Compounding also includes returns earned on earlier gains.
Can I enter a loss?
Yes, including a total loss of 100%. A return below -100% is outside this unlevered growth model.
Does annualizing a short period predict the next year?
No. It only expresses the supplied return on a comparable annual scale.