1 - 19 of 19 Posts

Joined

·
3,423 Posts

ROI = (Balance at end of year - contributions - balance at beginning of year) / balance at beginning of year

Note, that this isn't the proper way to treat contributions. Using the irr function in excel is far better.

However - if your contributions are small percent of your portfolio, then the error of my method is quite small. In my case, my contributions per year are less than 5-10% of the portfolio.

I like the ease of this simple method - it doesn't really matter to me if my calculation isn't perfectly accurate.

Joined

·
1,455 Posts

I use the same rough estimate/calculation as Mike. Keep it simple!

Joined

·
281 Posts

I've never thought about this before - but this thread has helped me. Thx

http://www.ehow.com/how_4763654_excel-calculate-investment-portfolio-returns.html

Joined

·
3,423 Posts

I think it's a good idea to track your investment returns.XIRR works good, but I'm still not sure how useful this number is.

1) If you have a certain investing "style" then it you can measure against a benchmark.

2) If you have a bad year, you can go back and look at some of the previous (hopefully) good years to make yourself feel better.

3) If you have a blog, then you can post your returns at least once a year.

Joined

·
3,423 Posts

Indexes never account for dividend reinvestment, but there are a number of places that publish total returns. I think Morningstar etc would be a good source.

1 - 19 of 19 Posts

Join the discussion

Canadian Money Forum

A forum community dedicated to Canadian personal finance enthusiasts. Come join the discussion about investing, stock portfolios, equities, frugality, real estate, market trading, taxation, retirement, and more!

Full Forum Listing
Recommended Communities

Join now to ask and comment!