Comments on: How to Calculate Personal Rate of Return (Time-Weighted Rate of Return) http://allfinancialmatters.com/2006/04/26/how-to-calculate-personal-rate-of-return-time-weighted-rate-of-return/ A personal finance blog dedicated to discussing such topics as budgeting, asset allocation, 401K, IRA, cash flow, insurance, financial planning, portfolio management, and other areas in personal finance. Fri, 20 Nov 2009 19:56:44 -0800 http://wordpress.org/?v=abc hourly 1 By: clayton woodrum http://allfinancialmatters.com/2006/04/26/how-to-calculate-personal-rate-of-return-time-weighted-rate-of-return/comment-page-1/#comment-353024 clayton woodrum Fri, 29 Aug 2008 11:29:44 +0000 http://allthingsfinancialblog.com/?p=648#comment-353024 Please send me the excel spread sheet. Thanks Please send me the excel spread sheet.

Thanks

]]> By: Aaron Malo http://allfinancialmatters.com/2006/04/26/how-to-calculate-personal-rate-of-return-time-weighted-rate-of-return/comment-page-1/#comment-317496 Aaron Malo Tue, 03 Jun 2008 03:13:22 +0000 http://allthingsfinancialblog.com/?p=648#comment-317496 I would love to see the excel spreadsheet of time weighted return as well? I would love to see the excel spreadsheet of time weighted return as well?

]]> By: Tony http://allfinancialmatters.com/2006/04/26/how-to-calculate-personal-rate-of-return-time-weighted-rate-of-return/comment-page-1/#comment-149920 Tony Thu, 11 Oct 2007 05:01:00 +0000 http://allthingsfinancialblog.com/?p=648#comment-149920 I was planning on lending some money to a investment group. How can I calculate the return on a loan? I was planning on lending some money to a investment group. How can I calculate the return on a loan?

]]> By: Omar Sharif http://allfinancialmatters.com/2006/04/26/how-to-calculate-personal-rate-of-return-time-weighted-rate-of-return/comment-page-1/#comment-3498 Omar Sharif Sun, 30 Apr 2006 18:47:48 +0000 http://allthingsfinancialblog.com/?p=648#comment-3498 Dear Sir: 1. I want to know the excell sheet of Economic Rate of Return where the input value will be 1 time capital cost, 20 years Overhead and maintenance cost = total cost, and my benefits are ( Increasing land value, Increasing trade and business, saving Maintenance cost= total Benefits) and last Net Benefits after Finding out I will figure out whether I will invest for the Road or not for construction. (Non Revenue Project) Given, PV = 12%, year 20 years Find, Economic Rate of Return Benefit Cost Ratio Net Pesent Value 2. Financial rate of Return of Construction of a building Input [One time capital cost O & M Cost for 20 years, Sell of Room, Rental value of rooms= total income, lastly Net Income all will decide me whether I will go for the construction or not, (Revenue Generating Project) Given, NPV Discount factor = 8%, year 20 years Find, Financial Rate of Return Benefit Cost Ratio Net Pesent Value Dear Sir:
1. I want to know the excell sheet of Economic Rate of Return where the input value will be 1 time capital cost, 20 years Overhead and maintenance cost = total cost, and my benefits are ( Increasing land value, Increasing trade and business, saving Maintenance cost= total Benefits) and last Net Benefits after Finding out I will figure out whether I will invest for the Road or not for construction.

(Non Revenue Project)
Given,
PV = 12%, year 20 years
Find,
Economic Rate of Return
Benefit Cost Ratio
Net Pesent Value

2. Financial rate of Return of Construction of a building Input [One time capital cost O & M Cost for 20 years, Sell of Room, Rental value of rooms= total income, lastly Net Income all will decide me whether I will go for the construction or not,
(Revenue Generating Project)

Given,
NPV Discount factor = 8%, year 20 years
Find,
Financial Rate of Return
Benefit Cost Ratio
Net Pesent Value

]]> By: Free Money Finance http://allfinancialmatters.com/2006/04/26/how-to-calculate-personal-rate-of-return-time-weighted-rate-of-return/comment-page-1/#comment-3376 Free Money Finance Fri, 28 Apr 2006 10:32:17 +0000 http://allthingsfinancialblog.com/?p=648#comment-3376 <strong>Star Money Articles for the Week of April 24</strong> Here are interesting posts and news this week from the MoneyBlogNetwork members and beyond: Consumerism Commentary discusses fancy weddings on a budget. AllFinancialMatters does some fancy math in telling us how to calculate personal rate of return. Mi... Star Money Articles for the Week of April 24

Here are interesting posts and news this week from the MoneyBlogNetwork members and beyond: Consumerism Commentary discusses fancy weddings on a budget. AllFinancialMatters does some fancy math in telling us how to calculate personal rate of return. Mi…

]]> By: SB http://allfinancialmatters.com/2006/04/26/how-to-calculate-personal-rate-of-return-time-weighted-rate-of-return/comment-page-1/#comment-3304 SB Wed, 26 Apr 2006 21:27:48 +0000 http://allthingsfinancialblog.com/?p=648#comment-3304 http://www.gummy-stuff.org/xirr.htm This is a very good explanation of XIRR. http://www.gummy-stuff.org/xirr.htm

This is a very good explanation of XIRR.

]]> By: shubham http://allfinancialmatters.com/2006/04/26/how-to-calculate-personal-rate-of-return-time-weighted-rate-of-return/comment-page-1/#comment-3302 shubham Wed, 26 Apr 2006 17:08:56 +0000 http://allthingsfinancialblog.com/?p=648#comment-3302 HI, I am a new reader of your blog and I find it really useful, maybe few months or years down the line I will also start a financial blog of mine :) If you can send the excel file to me I'd like to use it, though I dont invest right now. I am in the earning phase right now :) HI,

I am a new reader of your blog and I find it really useful, maybe few months or years down the line I will also start a financial blog of mine :)

If you can send the excel file to me I’d like to use it, though I dont invest right now.

I am in the earning phase right now :)

]]> By: Leif Eriksen http://allfinancialmatters.com/2006/04/26/how-to-calculate-personal-rate-of-return-time-weighted-rate-of-return/comment-page-1/#comment-3301 Leif Eriksen Wed, 26 Apr 2006 17:05:48 +0000 http://allthingsfinancialblog.com/?p=648#comment-3301 I would be interested in seeing your excel spreadsheet. I've seen two ways to calculate rate of return. The first is from the Association of Investment Management and Research (AIMR) in Charlottesville, Virginia. Their calculation is : Monthly Return = (EB – ½C + ½W) / (BB + ½ C – ½W) where BB is beginning balance, EB is ending balance. C is contribution during the period and W is withdrawal in the period. The other, which I think may be better, uses the XIRR function in Excel. I think it is better since it allows contributions/withdrawals that are more time dependent within the period being measured. It takes an annualized value (provided by XIRR) and converts it to a given period value. The formula is: ((XIIR result)+1)^((Ending date - Starting Date)/365)-1 ^ is power of in Excel. Ending date - Starting Date gives you the number of days being used in the measurement. Regards, Leif I would be interested in seeing your excel spreadsheet.

I’ve seen two ways to calculate rate of return. The first is from the Association of Investment Management and Research (AIMR) in Charlottesville, Virginia. Their calculation is :

Monthly Return = (EB – ½C + ½W) / (BB + ½ C – ½W)

where BB is beginning balance, EB is ending balance. C is contribution during the period and W is withdrawal in the period.

The other, which I think may be better, uses the XIRR function in Excel. I think it is better since it allows contributions/withdrawals that are more time dependent within the period being measured. It takes an annualized value (provided by XIRR) and converts it to a given period value. The formula is:

((XIIR result)+1)^((Ending date – Starting Date)/365)-1

^ is power of in Excel. Ending date – Starting Date gives you the number of days being used in the measurement.

Regards,
Leif

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