club_cafe: Calculating Total and Average Return on Investment
Thank you. I read the information that you directed me to previously but that does not give me the calculation that I am seeking.
Here is my specific problem. On the investment performance report it appears that the value of the stock at the time of transfer to Bivio is included as an investment. This amount is not the amount we invested but instead includes the returns that we had as of the date of transfer to Bivio for recordkeeping.
We actually invested $1961 in the stock. We sold some of the stock and took $1672.27 out in cash....leaving us with $288.73 currently invested in the stock we now hold. The current value of the stock we hold is $5705. Bivio is showing a -5.1 % rate of return. This cannot be correct. Is there something I need to correct in Bivio to get a correct calculation or do I need to do the calculation myself to get an accurate picture of what our returns have been on the stock?
Sharon Compare Cable, DSL or Satellite plans: As low as $29.95.
Sharon,
If you end up wanting to calculate the return on your stock
yourself in Excel, XIRR is the function you'd want to use.
I'd be glad to help you with doing that if you like. To
calculate the return on a single stock, you'd want to supply
XIRR with the following transactions: purchases, sales, and
dividend payments that were not reinvested (but not any
dividends that were reinvested).
Given the same data, you should get the same answer from the
XIRR function as you get from bivio.
-Jim Thomas
If you end up wanting to calculate the return on your stock
yourself in Excel, XIRR is the function you'd want to use.
I'd be glad to help you with doing that if you like. To
calculate the return on a single stock, you'd want to supply
XIRR with the following transactions: purchases, sales, and
dividend payments that were not reinvested (but not any
dividends that were reinvested).
Given the same data, you should get the same answer from the
XIRR function as you get from bivio.
-Jim Thomas
Jim,
I can't find the XIRR function in my version of Excel. What
version are you using?
Jim Thomas wrote:
> Sharon,
>
> If you end up wanting to calculate the return on your stock
> yourself in Excel, XIRR is the function you'd want to use.
> I'd be glad to help you with doing that if you like. To
> calculate the return on a single stock, you'd want to supply
> XIRR with the following transactions: purchases, sales, and
> dividend payments that were not reinvested (but not any
> dividends that were reinvested).
>
> Given the same data, you should get the same answer from the
> XIRR function as you get from bivio.
>
> -Jim Thomas
I can't find the XIRR function in my version of Excel. What
version are you using?
Jim Thomas wrote:
> Sharon,
>
> If you end up wanting to calculate the return on your stock
> yourself in Excel, XIRR is the function you'd want to use.
> I'd be glad to help you with doing that if you like. To
> calculate the return on a single stock, you'd want to supply
> XIRR with the following transactions: purchases, sales, and
> dividend payments that were not reinvested (but not any
> dividends that were reinvested).
>
> Given the same data, you should get the same answer from the
> XIRR function as you get from bivio.
>
> -Jim Thomas