Once you've calculated the total return (as above), plug the result into this equation: Annualized Return=(1+ Return)1/N-1 The outcome of this equation will be a number that corresponds to your return each year over the full span of time.  In the exponent (the little number outside the parentheses), the “1” represents the unit we are measuring, which is 1 year. If you wish to be more specific, you could use “365” to capture a daily return. The “N” represents the number of periods that we are measuring. So, if you are measuring your return over 7 years, you would use the number 7 in the place of "N." For example, suppose that over a seven-year period, your portfolio grew in value from $1,000 to $2,500. First, calculate your overall return: (2,500-1,000)/1000 = 1.50 (a return of 150%). Next, calculate your annualized return: (1 + 1.50)1/7-1 = 0.1399=13.99% annual return. That's all there is to it! Use the ordinary mathematical order of operations: do the operations inside the parentheses first, then apply the exponent, then do the subtraction. Now, let's say that you want to find semiannual returns (returns occurring twice a year, every six months) over the course of this seven-year period.  The formula stays the same; you only need to adjust the number of periods that you are measuring. Your final result will be a semiannual return.  In this case, you will have 14 semiannual periods, two per year over the course of seven years. First, calculate your overall return: (2,500-1,000)/1000 = 1.50 (a return of 150%). Next, calculate your annualized return: (1 + 1.50)1/14-1 = 6.76%. You can convert this into an annual return by simply multiplying by 2: 6.76% x 2 = 13.52%. You can also calculate the annualized equivalent of shorter returns. For example, imagine you only had a six-month return and wanted to know its annualized equivalent. Once again, the formula stays the same.  Suppose over a six-month period, your portfolio increases in value from $1,000 to $1,050. Start by calculating your overall return: (1,050-1,000)/1,000=.05 (a 5% return over six  months). Now if you wanted to know what the annualized equivalent would be (assuming a continuation of this rate of return and compounding returns),  you would calculate the following: (1+.05)1/.50-1=10.25% annual return. No matter how long or short the period of time, if you follow the formula above, you will always be able to convert your performance into an annualized return.
Calculate your annualized return. Calculate semi-annual returns. Calculate an annualized equivalent.