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How to Calculate an Annual Trend

Annual trends help people measure performance as well as predict future performance. An annual trend can be measured in various ways, including the raw data change, a rate of change or a percentage change. For example, an investor may track the annual trend of a stock and find that it went up $5, which may convert to a rate of 0.05 and a percentage of 5 percent. To find the annual trend, you need to know the amount at the beginning of the year and the amount at the end of the year.

Things You'll Need

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Instructions

    • 1

      Subtract the original value from the final value to find the trend as measured in raw increase or decrease. For example, if a mutual fund increased from $1,600 to $1,800, subtract $1,600 from $1,800 to find the annual trend is to increase by $200.

    • 2

      Divide the annual trend expressed as a raw number by the original amount to find the annual trend expressed as a rate. In this example, divide the increase of $200 by $1,600 to find the rate equals 0.125.

    • 3

      Multiply the annual trend expressed as a rate by 100 to find the annual trend expressed as a percentage. In this example, multiply 0.125 by 100 to find the annual trend is an increase of 12.5 percent.

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