How to calculate the annualized rate

1. The annualized rate of return is: annual income ÷ invested principal × 100%. For example, investment 1000000, annual income of 200000, annualized rate of return of 20 ÷ 100 × 100% = 20.

2. The calculation method of annualized rate of return is to convert the current rate of return (daily rate of return, weekly rate of return and monthly rate of return) into an annual rate of return, which is a theoretical rate of return, not an actual rate of return. For example, the daily rate of return is one in ten thousand, and the annualized rate of return is 3.65% (an average of 365 days a year).

3. Because the annualized rate of return is variable, the annualized rate of return is not necessarily the same as the annualized rate of return.