Money-Weighted Return Calculator
Free money-weighted return calculator to compute IRR or XIRR from dated cash flows. Measure your personal return adjusted for deposit timing and withdrawals.
How It Works
Money Weighted Return (MWR) measures your portfolio performance while accounting for exactly when and how much money you deposited or withdrew. Unlike time weighted return, which isolates manager skill from cash flow timing, MWR reflects your actual investor experience. If you deposited a large sum right before a market rally, MWR will exceed time weighted return because your timing added value. Conversely, a large purchase at the peak drags MWR below the fund published return. Enter each deposit and withdrawal with optional dates, then supply your current portfolio value as the terminal cash flow. Brokerages often label this figure as personal rate of return or dollar weighted return on quarterly statements. Use MWR when evaluating whether your contribution schedule helped or hurt overall wealth building across multiple accounts and tax wrappers.
This calculator uses the Newton Raphson iterative method to find the internal rate of return that makes the net present value of all cash flows equal to zero. When you provide dates for each flow, it computes XIRR, the annualized version using exact day counts divided by 365. Without dates, it assumes equal periods between flows and reports a per period IRR. The solver runs up to 100 iterations and converges when the rate changes by less than 0.01%. Results include total invested, total withdrawn, total gain, and simple total return percentage alongside the IRR or XIRR figure. Cross check large portfolios against your brokerage statement because minor rounding on dates can shift XIRR by a few basis points. Export cash flows from broker history to rebuild the same timeline this tool expects before comparing to official performance reports. Track iteration count and convergence flag when auditing unusual contribution patterns. Export cash flows from broker CSV before comparing XIRR to official performance report. Sign convention: deposits negative, withdrawals positive, ending value positive terminal flow. Convergence failures often trace to duplicate transfer rows between own accounts.
Compare large portfolios against brokerage statements because minor date rounding can shift XIRR by several basis points. Export cash flows from broker history to rebuild the same timeline before comparing to official performance reports. Track iteration count and convergence flags when auditing unusual contribution patterns across multiple accounts and tax wrappers.
Use Money-Weighted Return Calculator whenever inputs change: after market moves, new contributions, or revised personal assumptions. Bookmark the page for quick reruns without installing software.
Step by step
- Open Money-Weighted Return Calculator and enter your current inputs.
- Review calculated outputs and summary tables.
- Adjust assumptions and compare scenarios side by side.
Worked example
Example scenario for Money-Weighted Return Calculator: 0.01%. Enter those values above to reproduce the walkthrough described in How it works.
Adjust one input at a time to see sensitivity. Money-Weighted Return Calculator updates instantly so you can stress test optimistic and conservative assumptions before acting.
When to use this calculator
Reach for Money-Weighted Return Calculator when compute irr or xirr from irregular cash flows with dates: measure your personal rate of return accounting for deposit timing.. It suits quick what if analysis before trades, allocation changes, or plan updates.
Pair with related tools when the decision spans taxes, liquidity, or multi year projections beyond what one formula captures.
Common mistakes
Copying outputs without checking input units or stale market prices is a frequent error with Money-Weighted Return Calculator. Confirm tickers, percentages, and dates before acting.
Running a single baseline scenario ignores tail risks. Stress test with conservative inputs and compare against related tools listed below when the decision is material.
The Formula
NPV(r) = Σ(CF_t / (1 + r)^t) + FV / (1 + r)^T = 0
Newton-Raphson: r_new = r_old - NPV(r) / NPV'(r)
XIRR: NPV(r) = Σ(CF_i / (1 + r)^(d_i/365)) + FV / (1 + r)^(D/365) = 0
Total Gain = Final Value + Withdrawals - Deposits
Total Return = Total Gain / Total Invested
Newton Raphson iterates until NPV equals zero within 0.01% tolerance capped at 100 iterations. XIRR annualizes using day counts divided by 365. Volatile cash flow timing may need spreadsheet cross validation for audit trails and tax reporting reconciliation across multiple accounts and years.
Limitations and assumptions
Newton Raphson iterates until NPV equals zero within 0.01% tolerance capped at 100 iterations. XIRR annualizes using day counts divided by 365. Volatile cash flow timing may need spreadsheet cross validation for audit trails and tax reporting reconciliation across multiple accounts and years. Money-Weighted Return Calculator does not replace personalized advice. Fees, slippage, account specific rules, and behavioral constraints may change real world outcomes.
Key terms
- What is Money-Weighted Return
- Money Weighted Return is the internal rate of return that accounts for the timing and magnitude of every cash flow into and out of a portfolio.
- What is the difference between IRR and XIRR
- IRR assumes equal time periods between cash flows.
- Model assumption
- The solver uses the Newton Raphson method to find the discount rate that makes net present value of all cash flows plus the final portfolio value equal to zero.
Compare alternatives
Compare manager skill with Time Weighted Return Calculator, evaluate risk adjusted performance with Sharpe Sortino Ratio, and measure cumulative growth with Total Return Calculator on portfolios. Use those calculators when money-weighted return calculator alone does not capture the full decision.
Internal links on portfolios.tools help you chain calculators: run Money-Weighted Return Calculator first, then validate edge cases with a specialized tool from the related section below.
FAQ
What is Money-Weighted Return?
Money Weighted Return is the internal rate of return that accounts for the timing and magnitude of every cash flow into and out of a portfolio. Unlike time weighted return, MWR reflects the actual investor experience because large deposits or withdrawals directly affect the result. MWR answers what did I earn given my contribution pattern. Time weighted return answers how did the underlying investments perform ignoring when I added money. A dollar cost averaging investor who steadily buys through downturns may see MWR close to time weighted return, while someone who timed lump sums may see wide divergence between the two metrics on the same holdings.
What is the difference between IRR and XIRR?
IRR assumes equal time periods between cash flows. XIRR uses the actual calendar dates of each cash flow to compute an annualized return, making it more accurate when contributions and withdrawals happen on irregular dates. XIRR is standard for brokerage accounts with monthly auto deposits on varying calendar days, ad hoc bonuses, and partial withdrawals. IRR without dates is useful when you only know quarterly statement balances without exact transaction dates. Always prefer XIRR when dates are available because equal period spacing can materially misstate multi year personal returns on volatile contribution schedules.
How does the Newton-Raphson solver work?
The solver uses the Newton Raphson method to find the discount rate that makes net present value of all cash flows plus the final portfolio value equal to zero. Each iteration updates the rate using the slope of the NPV curve until the change falls below 0.01% tolerance or 100 iterations complete. The derivative term prevents oscillation on well behaved cash flow series. If the derivative approaches zero, the solver stops early to avoid division instability. Extremely lumpy flows near terminal value can require a spreadsheet XIRR cross check when convergence fails despite valid looking inputs.
Should deposits be negative or positive?
Use negative amounts for deposits because money leaving your bank account enters the portfolio as an outflow from the investor perspective in standard IRR sign convention. Use positive amounts for withdrawals you take out. The final portfolio value is treated as a terminal positive cash flow representing liquidation value today. Reversing signs produces nonsense rates or solver failure. Match the convention your brokerage uses on performance reports when comparing results line by line across tax advantaged and taxable accounts.
Why did the solver fail to converge?
The solver may fail when all cash flows share the same sign, when implied return falls below negative 99 percent, or when data is inconsistent with any valid rate. Verify deposits are negative, withdrawals positive, and final value is realistic relative to net contributions. All positive flows means no investment leg exists. All negative flows means no return realization. Split combined accounts if you commingled unrelated cash movements. Reduce date gaps or remove duplicate entries when imported from CSV exports that double count transfers between your own accounts. Retry with fewer flows to isolate the problematic row. Split combined taxable and IRA flows when measuring sleeve level personal return. XIRR day count basis differs slightly across spreadsheet engines by one basis point occasionally.
How do I use this money-weighted return calculator on phone or tablet?
Open the Money-Weighted Return Calculator in any mobile browser. Enter each deposit as a negative amount, withdrawals as positive, and your current portfolio value. The solver computes IRR or XIRR instantly in your browser. Optional localStorage remembers your inputs on device only.
Where is my data stored when I use Money-Weighted Return Calculator?
Nowhere on our servers. Calculations execute locally in your browser. Optional localStorage saves form fields on your device only and never transmits portfolio numbers over the network.
Should I rely on Money-Weighted Return Calculator for tax or legal decisions?
No. Money-Weighted Return Calculator provides educational math only. Tax law, account rules, and personal circumstances vary. Consult a qualified tax or legal professional before transactions with material consequences.
Related Tools
Compare manager skill with Time Weighted Return Calculator, evaluate risk adjusted performance with Sharpe Sortino Ratio, and measure cumulative growth with Total Return Calculator on portfolios.tools when interpreting personal versus fund level returns across taxable and retirement accounts and multiple brokerage feeds. Compare with Time Weighted Return, Sharpe Sortino Ratio, and Total Return Calc on portfolios.tools when reporting to advisors.