ROI of a brokerage account
Friday, 02 February 2007 14:42

Suppose you have a brokerage account. Once in a while you wire money to it or withdraw some money from it. It would be nice to compute a return on investment, but unfortunately this is difficult because of the withdrawals and deposits. With a computer, the right formulas and algorithms it can be done and that is implemented with this calculator. The inputs are the initial and final balance, a list of deposits and withdrawals and their dates.

Suppose the initial balance was \$ 1000 on January 25, 2002. On January 26, 2007 the final balance was \$ 5000. On October 3, 2003 you wired \$ 2000 to the brokerage account and on December 5, 2005 you withdrew \$ 500.

So first enter the initial balance, then the final balance and then add two rows with the plus (+) button and enter the deposit and withdrawal according to the table below:

DateAmountRemark
2002-01-251000Initial balance
2007-01-265000Final balance
2003-10-032000Deposit
2005-12-05-500Withdrawal

So after clicking on "Compute" the annualized ROI appears, which is in this case 17.2%. The input in the table below can also be entered via the tab Import from HTML by cutting in the field below, pasting it to the field in the tab Import from HTML and then pressing Load into Calculator.