Return Calculation Methods

Return calculation pages explain how investors measure portfolio performance across time, cash flows, and comparison periods.

These methods provide the measurement base before attribution or capture analysis is applied.

In this section

• Modified Dietz Method: Calculating Accurate Investment Returns
  The Modified Dietz Method offers a reliable means of calculating an investor's rate of return by excluding external factors that can skew performance measurements.
• Money-Weighted Rate of Return: The Return Measure That Reflects Cash-Flow Timing
  Learn what the money-weighted rate of return measures, why it is closely related to IRR, and when it is more informative than a simple holding-period return.
• Rate of Return: The Basic Measure of How Much an Investment Gains or Loses
  Learn what rate of return means, how to calculate it, and why nominal return, real return, required return, and time horizon all matter.
• Return on Investment: Measuring Profitability
  Return on Investment (ROI) is a key performance indicator used to evaluate the profitability of an investment.
• Time-Weighted Rate of Return (TWR): Measuring Portfolio Performance Without Cash-Flow Distortion
  Learn what time-weighted return measures, why it is the standard manager-performance metric, and how it differs from money-weighted return.