# Questions tagged [rate-of-return]

For questions relating to various measures of the rate of return on an investment, e.g. Internal Rate of Return, Financial Management Rate of Return, etc. Note that questions about these terms that don't apply to personal finance or actual problems you face, e.g. homework questions, are probably off-topic.

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### How do I account for newly added money when computing my rate of return?

I have a simple spreadsheet where I track the balance in my investment account. What should I do to handle new deposits in the account? For example: End of Day 1: balance = \$100 End of Day 2: \$...
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### Comparing IRA vs 401K's rate-of-return with dollar cost averaging

I have both an IRA in Vanguard and an old employer's 401k with Fidelity management. I would like to compare the performance between the two accounts over time, in order to determine if I should ...
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### difference in cagr and irr

I am trying to understand the IRR, XIRR and CAGR functions better. See the link below for my examples. I am looking at a very simple example of 20K invested and 50K returned at the end of an ...
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### Why adjust for inflation annually, as opposed to realising it after the holding period?

Why do investors offset their annual returns against inflation, when inflation isn't realised until the end of the holding period (when the investor is actually spending the money)? An example: ...
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### Time-Weighted Rate of Return & Money-Weighted Rate of Return

Background I am trying to figure out the computational difference between Time-Weighted Rate of Return (TWRR) and Money-Weighted Rate of Return (MWRR). Let's say, I have a portfolio looking like ...
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### Help me understand the oddity of percentage gains and losses?

If you start with \$100K, and you get a 50% gain, it's \$150K. Then, you get a 50% loss: now it's \$75K. Reverse the order (i.e. lose 50%, gain 50%), it's the same thing (a 25% loss). So, 50% up then ...
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### Calculate annualized return on stock with multiple transactions

I understand how to calculate the Annualized return on a stock when I have single purchase ie (principal + gain/principal) ^ (365/days) - 1 but how is it calculated when I have multiple buys and ...
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### How to determine desired/required value with "value averaging"?

As opposed to dollar cost averaging (DCA), value averaging (as described in this eHow article) is a technique where the investor determines the value the investment should have after a given time ...
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### Would high interest rates offset the issue of keeping money in a weak currency?

I am a UK resident and recently I managed to unlock an account in South Africa with FNB that my family had set up for me. The account is worth R90k (~£5k). I have no intention of moving back to South ...
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### How do I calculate the performance of a stock investment in the presence of dividends, additional investment and partial sales?

What is a single metric I can use to calculate the performance of a stock investment in the presence of dividends, additional investment, and partial sales? Such a metric should be comparable across ...
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### Are long-term bonds risky assets?

I think bonds are debt/loan and fixed-income, so they are risk-free, both short term and long term. But it seems like Bodie's Investment thinks long-term bonds are risky: For example, assume that ...
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### How to calculate the total return on buying a home?

How to calculate the total return on buying a home, considering things such as : home value down payment constant mortgage payment (going from mostly interests at the beginning to mostly principal at ...
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### How can I calculate a "running" return using XIRR in a spreadsheet?

I should say that I'm not married to XIRR, I just want to calculate the return on a running basis in a column next to dates, deposits and balances. Here's a screenshot of a simplified spreadsheet in ...
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### How do I calculate yearly rate of return on my investments?

I have been investing since May 2013 and I wanted to calculate my average yearly rate of return. For example:- Date May - 2013 - Total investment made (\$1200) January - ...
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### Why do people claim that Stock Markets are broadly exponential in the long term?

I've always heard Stock investment being described in terms of getting X% return per-year in the long-running. But looking at the FTSE in the long-term doesn't suggest an exponential growth? See below,...
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### What is the "rule of 70" or "rule of 72" with regards to investment, and how do I apply it?

What is the "rule of 72" (sometimes called the "rule of 70") with regards to investment, and how do I apply it?
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### How to quantify differences in return with low expense ratio vs high expense ratio mutual funds?

One often repeated piece of financial advice is to work to minimize your expense ratios in your mutual funds in order to maximize your returns. While it is often straightforward to determine the ...
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### How to calculate portfolio performance without tracking each individual transaction

How does one go about calculating the performance of a portfolio when the portfolio is robo-managed and rebalances often, therefore making tracking every transaction and exact holdings over time a ...
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### What is the difference between Rate of Return and Return on Investment?

Investopedia's Return on Investment (ROI) page says: ROI can be used in conjunction with Rate of Return, which takes in account a project’s time frame From this I understood that Return on ...
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### How can I calculate total return of stock with partial sale?

I have searched the internet for hours and still can't find the formula to calculate the Total Return in percentage with the below scenario. Bought 310 shares at \$3.15 brokerage \$19.95 Sold 200 ...
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### Using Loan to Invest - Paying Monthly Installments by Selling Originally Bought Shares

I'm trying to determine how much profit or rate of return is required from a financial instrument, say stocks, to break even with a loan taken out for this. I'll use specific numbers to simplify. ...
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### Help to understand money market fund total return

Take Schwab money market fund as an example - On the page of SWVXX, the following information is listed - yields: 7-day yield (without waivers) - 1.44% net expense ratio: 0.34% returns (annualized): ...
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### Why compare asset performance using returns, instead of using change factors?

Why do investors compare the returns of assets as opposed to the change factors of assets? E.g. comparing 6% / 4% instead of 106% / 104% to get the comparative performance of two assets. AFAIK ...
1 vote
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### XIRR not working for this dataset. Any other method to calculate rate of return?

For this particular dataset xirr is not returning any reasonable value either in excel or google spreadsheet. What is the option to calculate the rate of return in cases like this?? Sl-no date ...
1 vote
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### Cumulative Return between two dates

I have a table that carries data with cumulative return of some instrument. Data is described with start date, end date and cumulative return for date range (start-end): Start Date|End Date |...
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