Finance
Turn a monthly return into a yearly one
=(1+B1)^12-1How it works in Excel
- B1 is the monthly return.
- ^12 compounds it across 12 months.
- Format the cell as a percentage.
- For a quarterly return, use ^4.
The idea in general
Each month grows on top of the last, so a year is more than 12 times one month.
What I assumed
- The monthly return is in B1.
Check the result on your own data before relying on it.