annual basis meaning
DEFINITION of 'Annual Basis'. The return earned by an investment over the course of a year. Projections containing the phrase on an annual basis have usually used less than a year's worth of data to project a full year's worth of returns. For example, an investment might have returned 1.5% in one month. By multiplying this return by 12, an 18% annual basis is the result.
Annual basis. Definition: The technique in statistics of taking a figure covering a period of less than one year and extrapolating it to cover a full one year period. The process is known as annualizing. Nearby Terms.