How do I calculate annualized return?

Use the formula: (1 + Return)^(365/Days) - 1, where Return is total return over a period, and Days is the length of that period.

Can I use this calculator for crypto or short trades?

Yes! This tool works perfectly for short-term trades, day trading results, and crypto performance comparisons.

Annualized Return Calculator — Instantly Convert Short-Term Gains to Annual Yield

Q: What is annualized return?

Annualized return expresses an investment’s total return as an equivalent yearly percentage. It helps compare different investment periods on a common scale.

Quickly calculate the annualized return from total return and investment period in days.

The Annualized Return Calculator is a simple but powerful tool that helps you convert short-term returns into an annualized yield. Whether you are trading stocks, selling options, or analyzing crypto positions, this calculator makes it easy to understand the yearly equivalent of your profit.

Why I Created This Tool

Recently, I was preparing to sell a covered call option on a stock in my portfolio. The premium looked attractive, but I wanted to know how much this premium would add to my portfolio’s annual return. Unfortunately, no brokerage platform or standard tool made this calculation intuitive. So, I decided to build this calculator for myself and for anyone else who needs to quickly and clearly convert short-term returns into annualized percentages.

Formula Used

We use the standard formula for annualized return:

(1 + Return)^{(365 / Days)} - 1

When to Use the Annualized Return Calculator?

Covered Calls & Options Trading: Instantly calculate the annualized yield added by your option premiums.
Short-Term Trades: Convert profits from trades lasting days or weeks into yearly yield percentages to compare with long-term investments.
Crypto Investments: High-frequency crypto traders can better understand how short-term price movements translate to yearly performance.
Fixed-Income Analysis: Evaluate whether short-term bonds or treasury notes deliver competitive yields.
Portfolio Management: Compare the efficiency of various trading strategies in a common metric — annualized return.

How It Works

Just enter two numbers:

Return (%): The percentage gain or loss.
Days: The holding period for your investment or trade.

Our calculator will automatically compute the annualized return for you in one click.

Example with a Covered Call

Imagine you sold a covered call on a stock and earned a 2% premium for a 30-day period. Using this calculator, you can easily convert that 2% into an annualized return. The tool shows that a 2% return over 30 days translates into an approximate annualized yield of 26.82%. This simple insight helps you compare option strategies to other fixed-income or equity investments.

Why This Tool Matters

⚡ Fast: No manual Excel calculations — instant results.
🎯 Accurate: Uses a proven annualization formula.
📈 Universal: Suitable for stocks, options, crypto, short-term bonds, and more.
💡 Practical: Perfect for traders, investors, and financial planners.

Frequently Asked Questions (FAQ)

What is annualized return?

It’s the yearly equivalent rate of return that allows comparison between investments of different durations.

Is this calculator suitable for options traders?

Absolutely! It was inspired by real-life use in covered call option trades.

Can I use this for crypto or short-term trading?

Yes! This calculator works for any investment or trade with known return and holding period.

Conclusion

Whether you’re selling options, trading stocks, or analyzing crypto moves, understanding your annualized return is critical for making smart financial decisions. This tool makes it fast and simple. Try it now and see your returns in a whole new light!