Annualized Return = ((1 + text{Total Return})^{(1 / text{Number of Years})} – 1)
Total Return = ((text{Ending Value} – text{Beginning Value}) / text{Beginning Value})
Annualized Return = ((text{Ending Value} / text{Beginning Value})^{(1 / text{Number of Years})} – 1)
If the holding period is in months, use years = months / 12
If the holding period is in days, use years = days / 365
For multiple cash flows, use IRR or XIRR instead of the simple annualized return formula
To express as a percentage, multiply the result by 100