Definition

To calculate a rate or amount as if it were for a full year, even if the actual period is shorter.

Example

The bank annualized the interest rate to show how much it would be over a year.

Tense Forms

Conversation

Have you ever thought about how they annualize interest rates for savings accounts?

Yeah, I find it interesting how they calculate it based on a full year.

Exactly! It really helps to understand how much you can earn over time.

For sure, knowing that can really influence your savings decisions.

Synonyms & Antonyms

Root Explanation

Annualize → It is formed from "annual" (from Latin "annuus", meaning yearly) and "-ize" (a suffix used to form verbs meaning to make or to become). The word "annualize" means to make something occur on a yearly basis or to calculate something on an annual basis.

Memory Tip

Think of something that happens 'yearly' ('annual') and the action of making it so ('-ize'). This helps you remember that 'annualize' means to make something occur every year.

Visually Confused Words