The Motley Fool Discussion Boards
Investing/Strategies / Retirement Investing
|Subject: Re: Determining Annualized rate of return for Po||Date: 1/3/2005 1:05 PM|
|Author: joelxwil||Number: 43847 of 75611|
On a monthly basis, the formula is:
100*(Amt_at_end_of_month - Amt_at_beginning_of_month + Amt_withdrawn - Amt_deposited)/Amt_at_beginning_of_month
However, there is obviously a time distortion, depending on when you made deposits or withdrawals.
The *right* way to do it is to apply that formula on a daily basis. This gives you the daily return. Then you can accumulate this on a daily basis to get your return over any period of time.
But just don't forget to update your spreadsheet every day!
That is a bit too much even for me.
|Copyright 1996-2014 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us|