investment return calculations
Curious to understand how the current version MD calculates investment returns.
Using version 2022.5 (4091)
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1 Posted by Stuart Beesley ... on 17 Sep, 2022 05:53 AM
One thing it does is use things like Div, MiscInc, MiscExp in the calculation. So you must ensure these are correctly assigned to the right security.
2 Posted by Bob Sacamano on 30 Nov, 2022 11:02 AM
Also interested...
3 Posted by jason on 05 Feb, 2023 11:35 PM
Also interested. I have an IRA that I invested $4000 in 2007. I haven't put anything else in it except I'm doing DRIP. Fidelity says my %Total Gain/Loss is +118.42%. Moneydance says my % Change is 8.19%.
The discrepancy is that Moneydance includes the value of the dividends in the cost basis (which according to previous discussions is the correct thing to do) but Moneydance doesn't really show a ROI.
If I run the Investment Performance report on the account since the day of the 1st investment Moneydance says my Return % is 87.41 which doesn't square up with Fidelity's number.
Searching through the discussions there was one from way back (maybe 2009) where a Moneydance support person said there was a feature request for ROI and provided a link to vote on it but the link is dead.
4 Posted by Rosie on 06 Feb, 2023 12:20 PM
Also interested. I have some really weird entries listed as ROI on my investment report. They seem to have no basis in reality - no connection to the overall return let alone any sort of sensible annualised return. See attached example. It would be really helpful to understand how Moneydance performs the ROI calculation.
5 Posted by taradoridy on 27 Feb, 2023 04:48 PM
Calculating an investment is not an easy task. To calculate the return on investment, you need to consider factors such as the original cost of the investment, any fees or commissions you have paid, and the term of the investment. You also need to consider interest or dividends received, as well as capital gains or losses. Many resources are available online to help you learn more about investment calculations, including calculators and tutorials. I recommend reading the information on websites like this one https://katiecashonline.com/. That way you will have a better grasp of these concepts.
6 Posted by jason on 27 Feb, 2023 04:53 PM
That's why I bought Moneydance -- so I don't have to use all those online resources.