Calculate annual growth when there are multiple deposits
Calculate annual growth when there are multiple deposits
Loading saved threads...
Andres · External communityPost link
External question — Personal Finance Stack Exchange
Author: Andres
Original post: https://money.stackexchange.com/questions/127555
License: CC BY-SA 4.0 — https://creativecommons.org/licenses/by-sa/4.0/
Adaptation: HTML converted to plain text; contact email addresses removed.
I'm trying to understand how to calculate annual growth for a forex account when there are multiple deposits. For example
Jan 1 -> Initial deposit 1000
Jan 15 -> 25 profit, then growth = 2.5%, capital = 1025
Jan 30 -> 25 profit, then growth = 5.0%, capital = 1050
Feb 1 -> Additional deposit 1000, capital = 2050
Feb 15 -> 25 profit, then growth = ???
How can I mix in the new deposit in the calculation?
Any help is greatly appreciated
Quote
Report
Chris Degnen · External communityPost link
External answer — Personal Finance Stack Exchange
Author: Chris Degnen
Original post: https://money.stackexchange.com/a/127559
License: CC BY-SA 4.0 — https://creativecommons.org/licenses/by-sa/4.0/
Adaptation: HTML converted to plain text; contact email addresses removed.
You can use the time-weighted return method
a = 1025/1000
b = 1050/1025
c = 2050/(1050 + 1000)
d = 2075/2050
r = a b c d - 1 = 0.0628049
The return from Jan 1 to Feb 15 is 6.28049 %
That is 45 days, so annualising
(1 + r)^(365/45) - 1 = 0.638957
The annualised return is 63.8957 %
Quote
Report
Post Reply
Quoted from Forex.com.bd-Editorial External question — Personal Finance Stack Exchange Author: Andres Source score (net votes, not local likes): 1 Original post: https://money.stackexchange.com/questions/127555 License: CC BY-SA 4.0 — https://creativecommons.org/licenses/by-sa/4.0/ Adaptation: HTML converted to plain text; contact email addresses removed. I'm trying to understand how to calculate annual growth for a forex account when there are multiple deposits. For example Jan 1 -> Initial deposit 1000 Jan 15 -> 25 profit, then growth = 2.5%, capital = 1025 Jan 30 -> 25 profit, then growth = 5.0%, capital = 1050 Feb 1 -> Additional deposit 1000, capital = 2050 Feb 15 -> 25 profit, then growth = ??? How can I mix in the new deposit in the calculation? Any help is greatly appreciated
Checking account access…