FTB-C000108 / Formula component

Holding Period Return

Holding period return measures the economic gain or loss relative to starting value over a specified ownership interval.

Also known asHPR

Foundation Formula defined 6 linked topicsPublished

Definitions

In plain terms

It combines the change in ending value with eligible cash received while the position was held.

Technical

The calculation requires starting and ending values, intervening cash flows, timing and reinvestment assumptions, currency, fees or taxes, and exact interval boundaries.

Scope

It is not automatically annualized and can differ from a time-weighted portfolio return.

Formula

HPR = (V1 - V0 + CF) / V0
LaTeX: HPR=(V_1-V_0+CF)/V_0
SymbolMeaningUnit
V0starting valuecurrency
V1ending valuecurrency
CFeligible net cash receivedcurrency

Output unit: decimal return

Examples

  • A governed calculation records holding period return with its exact basis, effective time, source, and units.

Common misconceptions

  • Holding Period Return does not have one universal treatment without the applicable methodology, event terms, and data context.

Concept relationships

Related

Where this concept is used

Tutorials planned

These catalogued topics use this concept, but their complete build has not shipped yet.

  • D02-F02-A02 Important
  • D02-F02-A05 Important
  • D02-F03-A04 Important
  • D02-F03-A05 Primary
  • D03-F04-A02 Important
  • D03-F04-A03 Important

Evidence and governance

  1. CRSP US Stock and Indexes Databases Data Descriptions Guide Center for Research in Security Prices · official platform documentation

    Supports: preferred label, short definition, technical definition, formula

    Limits: CRSP conventions, fields, codes, and licensed observations are provider-specific and are not reproduced as universal rules.

  2. Fintech Builder Glossary Definition Contract The Fintech Builder · internal governed contract

    Supports: variant distinction

    Limits: Defines governed platform behavior rather than claiming these policies are universally prescribed by external McClellan methodology.

Reviewed by
Last reviewed
2026-07-27
Next review
2027-07-27
Record status
published
Written by

Fintech engineer building market-data and financial systems, and the author of every article, glossary record, and reference implementation on The Fintech Builder.