HPR vs IRR — what's the difference?

HPR ignores time value of money; IRR discounts cash flows to present value. For short periods or equal timing, they're similar. For long holds with uneven cash flows, IRR is more accurate.

How to calculate HPR?

HPR = (Ending Value − Beginning Value + All Distributions) / Beginning Value. A $100k investment returning $15k/year and sold for $130k after 5 years: HPR = ($150k + $30k) / $100k = 80%.

When is HPR most useful?

Comparing two investments of identical duration. Not useful across different holding periods — use annualized return or IRR for cross-period comparisons.

Holding Period Return (HPR) Calculator

Calculate total return over the investment hold period: (Income + Appreciation) / Initial Investment. Includes all cash flows and terminal value. Unlevered measure of asset performance.

Principal ($)

Annual Rate (%)

Years

Compounding / Year

$ Finance Disclaimer: These calculators are for educational and illustrative purposes only. Results do not constitute financial advice. Consult a licensed financial advisor before making investment or borrowing decisions.

How to Use

Enter the values for the scenario you are assessing. Calculate total return over the investment hold period: (Income + Appreciation) / Initial Investment. Includes all cash flows and terminal value. Unlevered measure of asset performance. Use the holding period return result to inform your calculation.

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Holding Period Return (HPR) Calculator

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Frequently Asked Questions

HPR vs IRR — what's the difference?

How to calculate HPR?

When is HPR most useful?