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Return on investment taking intermediate deposits and withdrawals into account
Financial - Wealth
Friday, 02 February 2007 14:38

This calculator computes the return on investement taking intermediate deposits and/or withdrawals into account. Only the initial and final amount, the mutations, deposits and withdrawals, need to be entered together with the date for each amount. Examples are an equity portfolio, or a savings account with variable interest, or even an investment in real estate such as a house. In that case a deposit can be turning the garage into an extra room and a withdrawal can be selling part of the garden to the neighbours.

An example for the use of this calculator can be viewed here.

Initial/final balance
or deposit/withdrawal

Yearly ROI:  

  • Enter the initial date and the initial balance in the first row. Enter the final date and the final balance in the second row.
  • Then create new rows for each deposit or withdrawal with the plus (+) button.
  • Enter the date and amount for each deposit and withdrawal. A positive amount denotes a deposit and a negative amount refers to a withdrawal.
  • Deposits only refer to money you send to the account from outside, so interest and dividends are not deposits. In the same way transaction costs and debet interest should not be entered as withdrawals.
  • The yearly Return on Investment (ROI) is based on 365 days per year.
  • The rows do not need to be entered in any specific order. Per definition the row with the earliest date refers to the initial balance and the row with the latest date refers to the final balance. The order of the rows can be changed by dragging and dropping them with the mouse.
  • Rows can be deleted by clicking the minus (-) buttons. Two rows will always remain visible.
  • At most 25 rows can be entered.
  • Expressions can be entered in the fields for the amount or balance.
  • You can save your input to an html file by clicking the button Save input to HTML.
  • With the tab Import from HTML you can load previously saved input into the calculator.

The computation is based on the fact that the present value of the final balance is equal to the future value of the initial balance plus the future value of each of the mutations. This results in a formula that can be solved only for realistic values of the ROI. Therefore the ROI will not be found for some (unrealistic) combinations of mutations, initial and final balance.

This calculator can also load data from an html file. Cut and paste the contents of the previously saved HTML file to the field below and click Load into Calculator.