DEFINITION of 'Annual Basis'
The return earned by an investment over the course of a year. Projections containing the phrase "on an annual basis" have usually used less than a year's worth of data to project a full year's worth of returns. For example, an investment might have returned 1.5% in one month. By multiplying this return by 12, an 18% annual basis is the result. The shorter the period of data used to determine an annual return, the less accurate that projection is likely to be. Statements about what an investment will return on an annual basis are always estimates.
BREAKING DOWN 'Annual Basis'
Annual basis can also refer to the cost of something over the course of a year. For example, if Angela wanted to establish a household budget for the year and it was April 1, she could look at how much money her family had spent on groceries in January, February and March to estimate what her family's grocery costs would be on an annual basis. She sees that she spent $300 in January, $250 in February and $350 in March, for a total of $900. Since 25% of the year has passed, she multiplies $900 x 4 to determine that groceries should cost her family around $3,600 on an annual basis.

Annualized Income
An estimate of the amount of money that an individual, business ... 
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The average amount of money earned by an investment each year ... 
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The rate of return, usually expressed as a percentage, that represents ... 
Average Annual Return  AAR
A percentage figure used when reporting the historical return, ... 
Yearly Rate Of Return Method
More commonly referred to as annual percentage rate. It is the ... 
Unannualized
A rate of return on an investment for a period other than one ...

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Fundamental Analysis
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Investing Basics
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Fundamental Analysis
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