Annualize

Annualize
1. To convert a rate of any length into a rate that reflects the rate on an annual (yearly) basis. This is most often done on rates of less than one year, and usually does not take into account the effects of compounding. The annualized rate is not a guarantee but only an estimate, and its accuracy depends on the variance of the rate. This rate is also known as "annualized return" and is similar to "run rate".

2. To convert a taxation period of less than one year to an annual (yearly) basis. This helps income earners to set out an effective tax plan and manage any tax implications.

1. For example, a security that returns 1% a month returns 12% on an annualized basis. If, however, the 12% value was computed after only one month of returns, it is not certain that the 12% will be achieved for the year.

2. For example if after the first three months of the year you earn $10,000, you simply multiply the $10,000 by four to achieve $40,000, your annualized income.


Investment dictionary. . 2012.

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Look at other dictionaries:

  • annualize — (v.) in economics and finance, 1904; see ANNUAL (Cf. annual) + IZE (Cf. ize). Related: Annualized; annualizing …   Etymology dictionary

  • annualize — (Amer.) v. calculate or adjust figures for a whole year; guess a value so that it reflects an anticipated or near total for a full year; be annualized (also annualise) …   English contemporary dictionary

  • annualize — ☆ annualize [an′yo͞o əlīz΄; ] often [an′yoolīz΄, an′yəlīz] vt. annualized, annualizing [ ANNUAL + IZE ] to compute for lesser periods as though on the basis of a full year …   English World dictionary

  • annualize — transitive verb ( ized; izing) Date: 1918 to calculate or adjust to reflect a rate based on a full year < quarterly returns yielding at an annualized rate of seven percent > …   New Collegiate Dictionary

  • annualize — /an yooh euh luyz /, v., annualized, annualizing. v.t. 1. to calculate for or as for an entire year: Investors earned an annualized rate of seven percent paid quarterly. v.i. 2. to be annualized. Also, esp. Brit., annualise. [ANNUAL + IZE] * * * …   Universalium

  • annualize — verb Variant of annualise …   Wiktionary

  • annualize — an·nu·al·ize …   English syllables

  • annualize — an•nu•al•ize [[t]ˈæn yu əˌlaɪz[/t]] v. ized, iz•ing 1) cvb to calculate for or as if for an entire year 2) cvb to become annualized • Etymology: 1800–10 …   From formal English to slang

  • annualize — ˈanyə(wə)ˌlīz transitive verb ( ed/ ing/ s) Etymology: annual (I) + ize : to compute for periods of less than a year on a basis corresponding to that applicable to a full year annualized income …   Useful english dictionary

  • annualizes — annualize (Amer.) v. calculate or adjust figures for a whole year; guess a value so that it reflects an anticipated or near total for a full year; be annualized (also annualise) …   English contemporary dictionary

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