What This Portfolio Return Calculation Measures
The calculator is appropriate for a simple period with a beginning value, ending value and entered income such as dividends. It reports the return for that defined period.
If contributions or withdrawals occur during the period, their timing affects performance measurement. A proper money-weighted or time-weighted return needs more detailed cash-flow data than this simplified model collects.
Portfolio performance becomes harder to interpret when money is added or withdrawn during the measurement period. A simple beginning-to-ending return can mistake your own contributions for investment performance. Time-weighted methods are designed to reduce the effect of external cash flows when evaluating investment performance, while money-weighted methods reflect the timing of your own dollars. Be clear about which question you are trying to answer before comparing the result with a benchmark.
Frequently Asked Questions
Does this calculate IRR from irregular contributions?
No. Irregular contributions and withdrawals require dates and a money-weighted or time-weighted return method.
Why can my account balance rise even if investment performance was weak?
New contributions increase the balance regardless of market return. To measure performance, cash flows need to be separated from gains and losses produced by the investments themselves.
Methodology & Related Tools
Review how RatioCalc builds, tests and updates calculator models before using an estimate for a material decision.
Accuracy review
Investing & Savings family audit: .
Site-wide consistency review: September 4, 2026.