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Trading and Investment Terms


An estimate of the sum of money that an individual or a business generates over a year.

Annualized income figures can help create budgets and make estimated income tax payments.

An annualized rate of return or forecast is not guaranteed and can change due to outside factors and market conditions.

For Example:

  1. A consultant earned $20,000 in January, $11,000 in February, $8,000 in March and $14,000 in April, the earned income figure for those four months total $53,000. To annualize the consultant's income, multiply $53,000 by 12/4 to equal $159,000.

An annualized return is similar to a run rate

The annualized cost of loan products is often expressed as an annual percentage rate (APR).