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Portfolio Performance Return Calculator

Input the current market for all stocks in your portfolio(exclude cash)

Input each transaction as a line with format:date,type,amount where type is p(for purchase), s(for sale) and i(for income). For example, 12/20/2018,p,30000 means at 12/20/2018 purcahse 30000 stock

Calculated Results
Annual Return6.07%
Total Purchased75,000
Total Sold25,000.00
Total Income500.00
Capital GL10,000.00
Net Profit10,500.00
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Investment Performance Return

Investment Performance is a measurement to tell you how good the investment is. For example, in case 1, you bought a stock at 100 and sold it after two years at 120; in case 2, you bought at the same price but sold in one year later at 110. Compare case 1 and case 2 to find out which case has a better performance is not a straight forward question. Therefore, this calculator will provide you a way to calculate the standard annual IRR return based on you transaction activities and by comparing that number, you can easily find out which one has a better performance return.

To calculate the standard annual IRR performance return, we will need to construct a cash flow firstly based on the transaction activities. A cash flow is a set of cash movement activities that have an cash flow date and amount. A purchase is considered as a negative cash flow because you need to pay cash out to buy the asset. An income or sale is considered as positive cash flow. If we use \( (T_i, F_i) \) to denote the ith cash flow where \( T_i\) is the time in years of the transaction to today, \( F_i \) is the ith transaction amount, then the IRR is the solution for the following equation: \[ 0.0 = \sum_{i=1}^{i=n}{F_i (1+IRR)^{T_i}} + CurrentValue \]

For case 1 mentioned above, the cash flow are (2, -100), (0, 120). The equation becomes: \[ 0.0 = -100(1+IRR)^2 + 120(1+IRR)^0 = 120 -100(1+IRR)^2 \] The solution is: \[ \sqrt{1.2} - 1 = 0.09544511501033215 \] That means the IRR return is about 9.54%. Using the calculator, you input the current value as 0.0, the transactions:
1/1/2018,p,100
1/1/2020,s,120
The calculator will also calculate the return value as 9.54%

For case 2, the cash flow is (1, -100), (0, 110) The equation becomes: \[ 0.0 = -100(1+IRR) + 110(1+IRR)^0 = 110 -100(1+IRR) \] The solution is: \[ 1.10 - 1 = 0.10 \] That means the IRR return is about 10.00% Using the calculator, you input the current value as 0.0, the transactions:
1/1/2018,p,100
1/1/2019,s,110
The calculator will also calculate the return value as 10.00%

By comparing the return value, you can easily find out that case 2 is a better investment than case 1 from performance return point of view.

This calculator can be used for different kinds of investments, such as stock, options, bonds, real estate, mutual fund or ETF.