This free annualized return calculator puts any premium trades on equal footing. Enter the income, capital at risk, and days held for up to three trades and instantly see which one earns the most per year. Educational only, not advice.
How to use the annualized return calculator
- For each trade, enter the income collected, the capital at risk, and the days held.
- Compare up to three trades side by side.
- The highest annualized return is highlighted as the winner.
The formula behind it
- Static return = income / capital at risk
- Annualized return = static return x 365 / days held
Annualized return FAQ
Why annualize a return?
A 2 percent return in 10 days is very different from 2 percent in 90 days. Annualizing scales each trade to a full year so you can compare them fairly.
Which trade is best?
All else equal, the trade with the higher annualized return uses your capital more efficiently. But always weigh the annualized number against the risk of each trade.
Educational only, not financial advice.