The Bottom Line: How to Calculate Your Portfolio's Return

The Bottom Line: How To Calculate Your Portfolio's Return Splash image

The question every investor wants to know is:

How well am I doing?

Although some people are satisfied simply watching the dollars grow, most investors want that translated into a performance figure.

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sri from Iowa posted over 2 years ago:

Website link is not working.

Jean from Illinois posted over 2 years ago:

The link to the top portfolio tracking websites has been fixed. Thank you.

Pasi from Illinois posted over 2 years ago:

Why not just use TWR (Time-Weighted-Return) calculation instead? There's no need for proxies then.

Elneta from Colorado posted over 2 years ago:

EZROR is a program which accurately calculates internal rate of return. The only inputs required are the portfolio balance values on the begining and ending dates for the period to be calculated and any intervening additions to or withdrawals from the portfolio. A free 10 day trial version may be downloaded from or purchased for $59.95.

James from Georgia posted over 2 years ago:

What this article is discussing is making an interest rate adjusted discounted cash flow analysis.

Instead of buying ANY software to do this calculation, there is all kinds of FREE software that will do these kinds of calculations.

A related subject (in a corporate environment) is the capital budgeting decision process. It's kind of the same thing from a reverse point of view. In capital budgeting, one spends money now to generate future anticipated cash flows which get interest rate adjusted back to a net present value.

Microsoft Excel (as part of the Microsoft office product) has a TON of financial routines (functions) that do this kind of analysis. Again, we are talking free.

If you have ANY OTHER office product (including Word Perfect), I am sure those products all have the same basic functionality - including the "open source" (free) software available on the web (if you are NOT inclined to pay for any office product).

Happy Trails.

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