Unannualized

DEFINITION of 'Unannualized'

A rate of return on an investment for a period other than one year. An unannualized return may be used to report results for a month, quarter or for several years. When the returns on a particular investment are converted to reflect the rate on an annual basis, it is referred to as the annualized return.

BREAKING DOWN 'Unannualized'

It is sometimes difficult to compare unannualized rates because of different time periods; therefore, some people annualize the return so that it can be compared to other companies or returns. However, annualized rates are only estimates. For example, if the return for January was 1%, this would be the unannualized return, the annualized return without compounding is 12%.

RELATED TERMS
  1. Annualized Rate

    A rate of return for a given period that is less than one year, ...
  2. Annualize

    1. To convert a rate of any length into a rate that reflects ...
  3. Average Annual Return - AAR

    A percentage figure used when reporting the historical return, ...
  4. Yearly Rate Of Return Method

    More commonly referred to as annual percentage rate. It is the ...
  5. Gross Rate Of Return

    The total rate of return on an investment before the deduction ...
  6. Return

    The gain or loss of a security in a particular period. The return ...
Related Articles
  1. Investing Basics

    Calculating Annualized Total Return

    The annualized total return is the average return of an investment each year over a given time period.
  2. Professionals

    How To Measure Returns On The Series 65 Exam

    An investor who is evaluating the performance of a portfolio manager must take into consideration the impact that any contributions or withdrawals made by the investor will have on the overall ...
  3. Bonds & Fixed Income

    4 Types Of Money Market Yields

    We give you four equations to help figure out the yields on your investments.
  4. Investing

    4 Benefits of Holding Stocks for the Long Term

    Discover some of the benefits that come from buying and holding stocks for longer periods of time, such as tax savings and risk minimization.
  5. Term

    What's a Return of Capital?

    A return of capital is an investment return that is not considered income.
  6. Term

    Understanding Total Returns

    Total return measures the rate of return earned from an investment over a period of time.
  7. Investing Basics

    More Ways to Evaluate Portfolio Performance

    The Jensen measure is another tool investors use to include risk when measuring portfolio performance.
  8. Investing Basics

    How to Calculate Risk Premium

    Think of a risk premium as a form of hazard pay for risky investments.
  9. Investing Basics

    Explaining Absolute Return

    Absolute return refers to an asset’s total return over a set period of time. It’s usually applied to stocks, mutual funds or hedge funds.
  10. Investing Basics

    What's the Rate of Return?

    Rate of return is the earnings an asset generates in excess of its initial cost. The amount is usually expressed as an annualized percentage rate. Rate of return can be calculated based on the ...
RELATED FAQS
  1. What annual return could an investor expect on average from the drug sector?

    Learn which annual average returns the drugs manufacturing sector and its industries can generate for investors based on ... Read Answer >>
  2. What's the difference between absolute and relative return?

    Knowing whether a fund manager or broker is doing a good job can be a challenge for some investors. It's difficult to define ... Read Answer >>
  3. What is a good annual return for a mutual fund?

    Explore the question of what constitutes a good annual return from investing in mutual funds and the factors that affect ... Read Answer >>
  4. What can cause the rate of return to be negative?

    Learn how poor company or sector performance, economic turmoil and inflation can cause the rate of return on an investment ... Read Answer >>
  5. What annual return could an investor expect on average from the telecommunications ...

    Learn what annual return an investor can expect on average from the telecommunications sector and which factors influence ... Read Answer >>
  6. How does the required rate of return affect the price of a stock, in terms of the ...

    First, a quick review: the required rate of return is defined as the return, expressed as a percentage, that an investor ... Read Answer >>
Hot Definitions
  1. MACD Technical Indicator

    Moving Average Convergence Divergence (or MACD) is a trend-following momentum indicator that shows the relationship between ...
  2. Over-The-Counter - OTC

    Over-The-Counter (or OTC) is a security traded in some context other than on a formal exchange such as the NYSE, TSX, AMEX, ...
  3. Quarter - Q1, Q2, Q3, Q4

    A three-month period on a financial calendar that acts as a basis for the reporting of earnings and the paying of dividends.
  4. Weighted Average Cost Of Capital - WACC

    Weighted average cost of capital (WACC) is a calculation of a firm's cost of capital in which each category of capital is ...
  5. Basis Point (BPS)

    A unit that is equal to 1/100th of 1%, and is used to denote the change in a financial instrument. The basis point is commonly ...
  6. Sharing Economy

    An economic model in which individuals are able to borrow or rent assets owned by someone else.
Trading Center