Calculator Panel
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Enter your values above and click Calculate.
What This Calculator Does
This calculator determines aggregate portfolio performance, accounting for deposits or withdrawals during the investment cycle.
How to Use This Calculator
Enter beginning portfolio value, ending portfolio value, and net deposits. Click Calculate to view percentage and dollar return.
How the Calculation Works
The underlying math engine processes your inputs using exact formulas. This systematic approach ensures professional, institutional-grade calculation precision:
Mathematical Formula
Formula Legend:
- · Ending Value = Ending total portfolio valuation.
- · Beginning Value = Starting total portfolio valuation.
- · Net Deposits = Sum of cash deposits minus cash withdrawals.
Practical Example
Suppose your portfolio started the year at $100,000, ended at $125,000, and you made net contributions of $10,000 during the year:
Step-by-Step Mathematical Walkthrough:
- 1 First, find net growth: $125,000 - $100,000 - $10,000 net deposits = $15,000.00 capital gain.
- 2 Calculate capital basis: $100,000 + $10,000 = $110,000.00.
- 3 Divide gain by basis: $15,000.00 / $110,000.00 = 0.1364.
- 4 Multiply by 100 to get holding period return percentage: 13.64%.
Important Assumptions & Notes
- Net deposits are normalized as additions to the capital base.
Common Mistakes or Considerations
- Forgetting to subtract cash additions, which artificially inflates perceived returns.
Frequently Asked Questions
How do I calculate aggregate portfolio return?
By dividing the sum of all current holdings values (plus any cash balances) by the total initial capital invested, subtracting 1, and multiplying by 100.
What is the difference between a weighted portfolio return and a simple return?
A simple return treats all assets equally, whereas a weighted portfolio return scales each asset's return by its percentage size in the portfolio, providing a true performance metric.
Does this calculator support dividend reinvestments?
Yes, any dividends that are reinvested directly increase the market value of your holdings, which naturally raises your aggregate portfolio return.
Why should I compare my portfolio return to a benchmark like the S&P 500?
Comparing your returns to a broad market index shows whether your active asset selection is adding value or underperforming a simple low-cost index fund.
How does asset allocation influence overall portfolio return?
Asset allocation determines your portfolio's risk-return profile. Portfolios with higher stock allocations generally yield higher long-term returns but experience greater volatility.