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.
INVESTOPEDIA EXPLAINS '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.

Compound Annual Growth Rate  CAGR
The yearoveryear growth rate of an investment over a specified ... 
Annualized Total Return
The average amount of money earned by an investment each year ... 
Basis
1. The variation between the spot price of a deliverable commodity ... 
Annual Turnover
The percentage rate at which a mutual fund or exchangetraded ... 
Annualized Rate
A rate of return for a given period that is less than one year, ... 
Semiannual
A semiannual event happens twice a year, typically every six ...

Fundamental Analysis
How To Calculate Your Investment Return
How much are your investments actually returning? Find out why the method of calculation matters. 
Investing
Measure Your Portfolio's Performance
Learn three ratios that will help you evaluate your investment returns. 
Fundamental Analysis
Gauge Portfolio Performance By Measuring Returns
Calculate returns frequently and accurately to ensure that you're meeting your investing goals. 
Investing
How To Evaluate Pension Risk By Analyzing Annual Costs
Learn how to assess whether a company's pension plan is posing more risks than what the footnotes indicate. 
Economics
Understanding Perpetuity
Perpetuity means without end. In finance, a perpetuity is a flow of money that will be received on a regular basis without a specified ending date. 
Investing Basics
Explaining Market Value of Equity
Market value of equity is the total value of all the outstanding stock as measured in the stock market at a particular time. 
Investing Basics
What is Spread?
Spread has several slightly different meanings depending on the context. Generally, spread refers to the difference between two comparable measures. 
Economics
What is the Breakeven Point?
In general, when gains or revenue earned equals the money spent to earn the gains or revenue, you’ve hit the breakeven point. 
Stock Analysis
What is the PricetoSales Ratio?
The pricetosales ratio is an indicator of the value placed on each dollar of a company’s sales or revenues. 
Investing Basics
What is Treasury Stock?
Treasury stock is a company’s own stock that it holds in its treasury for later use.