# Annualized return

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

**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 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?**

**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