I have a 401k through Fidelity and have recently started being more active in the market. I was haphazardly selecting funds that seemed to do well but apparently wasn't the most advantageous due to their expense ratios. So I decided to rebalance and from here do a lookback each year on performance.
To make sure I understand the RoR calculation, I looked at my statement from 31 Dec 2019 to 31 Dec 2020:
- Beginning balance: $27,222.92 - Employee Contributions: +$6,853.54 - Employer Contributions: +$3,909.74 - Exchange In: $34,661.77 - Exchange Out: -$34,661.77 - Fees/Credits: -$11.83 - Change in Market Value: +$8,334.29 - Ending Balance: $46,308.66 - Vested Balance: $46,308.66 - Dividends/Interest: $1,189.54
Below that is a block that says my Personal RoR was 22.7%, however I cannot come up with that RoR on my own.
As I understood it, to compute the RoR I would use the following formula:
(((End Balance - Total Contributions) / Start Balance) - 1) * 100 (((46,308.66 - 10,763.28) / 27,222.92) - 1) * 100 = 30.57%
What am I doing wrong in my calculation? According to Fidelity, its computed like this.