Step

1

Divide the daily return percentage by 100 to convert it to a decimal. For example, if you earn 0.018 percent per day, you would get a daily return rate of 0.00018.

Step

2

Add 1 to the result from step 1. In our example, adding 1 to a daily rate of 0.00018 equals 1.00018.

Step

3

Raise the result from step 2 to the 365th power, where 365 represents the number of times per year the interest is compounded. Continuing with our hypothetical rate, 1.00018 to the 365th would compute to 1.067899983.

Step

4

Subtract 1 from the result from step 3 to get the annual return as a decimal. Subtracting 1 from our figure (1.067899983) to find the annual return rate expressed as a decimal would give us 0.067899983.

Step

5

Multiply the result from step 4 by 100 to convert the annual return rate expressed as a decimal to a percentage. We, therefore, multiply 0.067899983 times 100 to get an annual return rate of about 6.79 percent.

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Good articles and very useful blog,i like its.

ReplyDeleteWell.... round about every blog posts online don't have much originality as I found on yours.. Just keep updating much useful information so that reader like me would come back over and over again.

ReplyDelete………………

forex trading RobotsNice information, thanks to share

ReplyDeletebut the problem is there are some daily returns which when compounded annually giving 400% returns,so while taking avg of the whole year daily returns its coming very huge ,can any1 help me out pls....

ReplyDeletehw abt when we have negative return/ loss? How to annualize that too?

ReplyDeletewhat if we have 250 days daily return. what to do???

ReplyDelete