annualize

tr.v., -ized, -iz·ing, -iz·es.
To adjust or calculate so as to reflect a rate that is based on a full year: offers a rate that is annualized at six percent.

1. To convert a rate of any length into a rate that reflects the rate on an annual (yearly) basis. This is most often done on rates of less than one year, and usually does not take into account the effects of compounding. The annualized rate is not a guarantee but only an estimate, and its accuracy depends on the variance of the rate. This rate is also known as "annualized return" and is similar to "run rate".

2. To convert a taxation period of less than one year to an annual (yearly) basis. This helps income earners to set out an effective tax plan and manage any tax implications.

Investopedia Says:
1. For example, a security that returns 1% a month returns 12% on an annualized basis. If, however, the 12% value was computed after only one month of returns, it is not certain that the 12% will be achieved for the year.

2. For example if after the first three months of the year you earn $10,000, you simply multiply the $10,000 by four to achieve $40,000, your annualized income.

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Extrapolation of an occurrence lasting a limited time period to the amount or rate that would be generated in a year. For example, an interest rate of 2 1/2% per quarter would be annualized to 10%, slightly more with compounding. Sales of ice cream in July should be annualized by applying a seasonal adjustment that considers the fact that ice cream sales are higher in July than in a typical month.

Accounting method of establishing data on an annual basis.

To extend an item to an annual basis. It is a procedure specified by the Internal Revenue Code whereby taxable income for part of a year is multiplied by 12 and divided by the number of months involved. For example, if taxable income for 3 months is $20,000, it will be annualized as follows:

Annualizing is common in financial forecasting.

IN BRIEF: Per year.

Do you know how much waste is produced annually?