Suppose you have a savings account. Once in a while you wire money to it or withdraw some money from it. Since the interest rate is variable it would be nice to compute an annual return on investment. Unfortunately this is difficult because of the withdrawals and deposits and the variable interest rate. 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.
In order to show the full strength of the calculator let's assume that the savings account is in euro's and that you want to compute the annual return on your investment in dollars.
Suppose the initial balance was € 1000 on January 25, 2002, and suppose $1=€1.2 at that date. On January 26, 2007 the final balance was € 3500 with $1=€0.8. On October 3, 2003 you wired $ 2000 to the savings account and on December 5, 2005 you received from a withdrawal $ 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:
Date  Amount  Remark 
20020125  1000/1.2  Initial balance 
20070126  3500/0.8  Final balance 
20031003/td>  2000  Deposit 
20051205  500  Withdrawal 
So after clicking on "Compute" the equivalent annual interest rate ROI appears, which is in this case 15.65%.
The input in the table above 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.
