Annualized return measures the performance of an investment option in a year, while absolute return measures the performance from the day of the commencement of investment. Most Return on Investment calculators in India calculate absolute returns. However, absolute return doesn’t provide an accurate figure if the investment is held for more than a year. The annualized return helps you compare investment returns across different holding periods. Nevertheless, you can calculate annualized returns by dividing the figure by the number of years.