# Annualized return

What is the annualized return?

The annualized rate of return is the geometric mean of the returns of an investment. It is a measure of how much that investment would earn on average per year, assuming the return was compounded, over a given time period.

What is the formula? Where will you see an annualized return in Composer?

This metric appears in a few places in Composer including:

• In your library of symphonies • In the results of a symphony backtest • In the overview of a symphony template What is the step-by-step calculation?

Let's go through the calculation of the annualized return step-by-step for a symphony backtest. Here's how we do it:

• Compute the cumulative percent return of the symphony for the time between the first and last date in the backtest
• Add one to that value
• Raise that result to the (252/N) power, where N is the number of trading days in the backtest
• Subtract 1 from that result
{"ft_lang_label":"__label__en","ft_lang_prob":0.93274695,"math_prob":0.90814155,"size":1034,"snap":"2022-40-2023-06","text_gpt3_token_len":232,"char_repetition_ratio":0.15728155,"word_repetition_ratio":0.0,"special_character_ratio":0.21083172,"punctuation_ratio":0.071794875,"nsfw_num_words":0,"has_unicode_error":false,"math_prob_llama3":0.9939414,"pos_list":[0,1,2,3,4,5,6,7,8],"im_url_duplicate_count":[null,3,null,3,null,3,null,3,null],"WARC_HEADER":"{\"WARC-Type\":\"response\",\"WARC-Date\":\"2023-01-31T07:00:49Z\",\"WARC-Record-ID\":\"<urn:uuid:9823c6fc-8f40-4ff5-a9a8-bfeef0d034fc>\",\"Content-Length\":\"16986\",\"Content-Type\":\"application/http; msgtype=response\",\"WARC-Warcinfo-ID\":\"<urn:uuid:81fbddbc-746d-4467-ad18-ab88a99a91df>\",\"WARC-Concurrent-To\":\"<urn:uuid:d726c08a-205b-437a-b4fa-184eb6c7f8f7>\",\"WARC-IP-Address\":\"3.222.86.36\",\"WARC-Target-URI\":\"https://help.composer.trade/article/21-annualized-return\",\"WARC-Payload-Digest\":\"sha1:23SGY7LRRSVG6ITHOUJE7SF2GHCDHKAR\",\"WARC-Block-Digest\":\"sha1:BIDORUF46BHPTFQNLZ3F5COMEE6UMZEY\",\"WARC-Identified-Payload-Type\":\"text/html\",\"warc_filename\":\"/cc_download/warc_2023/CC-MAIN-2023-06/CC-MAIN-2023-06_segments_1674764499845.10_warc_CC-MAIN-20230131055533-20230131085533-00501.warc.gz\"}"}