Annual Return Excel Template

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Let us take an example of an investor who purchased 10 stocks of a company worth $10 each on January 1, 2014. The invest
all the stocks on December 31, 2018, for capital appreciation of $8 per stock. Further, the investor also received dividends o
per stock in 2014 and $2 per stock in 2017 totaling dividend income of $3 per stock during the five-year holding period.
Calculate the annual return earned by the investor during the period.

Particulars Value
Initial Stock Price $10
Capital Appreciation per Stock $8
Dividend per Stock $3
No. of Stocks 10
No. of Years 5

Initial Value is calculated using the formula given below

Initial Value = Initial Stock Price * No. of Stocks

Initial Value $100

Capital Appreciation is calculated using the formula given below

Capital Appreciation = Capital Appreciation per Stock * No. of Stocks

Capital Appreciation $80

Dividend Earned is calculated using the formula given below

Dividend Earned = Dividend per Stock * No. of Stocks

Dividend Earned $30

Ending Value is calculated using the formula given below

Ending Value = Initial Value + Capital Appreciation + Dividends Earned

Ending Value $210

Annual Return is calculated using the formula given below

Annual Return = (Ending Value / Initial Value) (1 / No. of Years) - 1

Annual Return 16.0%

uary 1, 2014. The investor decided to sell off
so received dividends of $1
ear holding period.
Let us take an example of Dan who invested $1,000 to purchase a coupon paying bond on January 1, 2009.
The bond paid $80 per annum as coupon every year till its maturity on December 31, 2018.
Calculate the annual return earned by Dan during the 10-year holding period.

Particulars Value
Initial Value $1,000
Coupons Payment per Annum $80
No. of Years 10

Total Coupons Paid is calculated using the formula given below

Total Coupons Paid = Coupon Payment per Annum * No. of Years

Total Coupons Paid $800

Ending Value is calculated using the formula given below

Ending Value = Initial Value + Total Coupons Paid

Ending Value $1,800

Annual Return is calculated using the formula given below

Annual Return = (Ending Value / Initial Value) (1 / No. of Years) - 1

Annual Return 6.1%