# Annualized Return

In this article, you'll learn about the annualized return and how it's calculated in Composer.

**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