Calculate annual growth when there are multiple deposits

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

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 %