1. What is YTD Annualised Calculation?

The YTD (Year-to-Date) Annualised calculation projects what the annual return would be if the current YTD performance continued for the entire year. It's commonly used in finance to compare performance across different time periods.

2. How Does the Calculator Work?

The calculator uses the YTD annualised formula:

Where:

• \( YTD \) — Year-to-date return or amount in dollars
• \( days\_to\_date \) — Number of days from the start of the year to the current date

Explanation: The formula scales up the partial-year return to estimate what it would be over a full year.

3. Importance of Annualised Returns

Details: Annualised returns allow for comparison of investments with different time periods, providing a standardized performance metric.

4. Using the Calculator

Tips: Enter the YTD amount in dollars and the number of days elapsed in the current year. Both values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: Why use 365 days instead of 252 trading days?
A: This calculator uses calendar days for general purposes. For trading-specific calculations, you may substitute 252 trading days.

Q2: What's the difference between YTD and annualised?
A: YTD shows actual performance to date, while annualised projects what that performance would equal over a full year.

Q3: When is annualised return most useful?
A: When comparing investments started at different times during the year.

Q4: Are there limitations to annualised returns?
A: Yes, they assume current performance will continue unchanged, which may not reflect actual future results.

Q5: Can this be used for losses as well as gains?
A: Yes, the calculation works the same way for negative returns.