Rates of Return Differences

Quercus47

I'm trying to find out the inner-workings of Quicken's Return % 3-year and ROI % 3-year calculations. Also, in the scenario where there are no contributions or withdraws from an investment, i.e. its just sitting there year-in-year out growing and reinvesting, I would expect that the Avg. Annual Return 3-year (aka IRR 3 year) and Return % 3-year would be the same, but they're not.

Thanks

Jim_Harman

The ROI % numbers are not annualized, so if an investment was untouched for 3 years, the ROI % number would be roughly 3x the IRR.

Issues with the ROI %  calculation were discussed at length here
https://community.quicken.com/discussion/comment/20048421#Comment_20048421

The Return (%) numbers are downloaded with the quote data and do not depend on the timing of your purchase or sales. They are annualized and assume reinvestment of dividends and other distributions. In the past there have been problems with the accuracy of this downloaded data, but I have not seen any complaints recently. See this discussion
https://community.quicken.com/discussion/comment/20055944#Comment_20055944

Jim_Harman

The ROI % numbers are not annualized, so if an investment was untouched for 3 years, the ROI % number would be roughly 3x the IRR.

Issues with the ROI %  calculation were discussed at length here
https://community.quicken.com/discussion/comment/20048421#Comment_20048421

The Return (%) numbers are downloaded with the quote data and do not depend on the timing of your purchase or sales. They are annualized and assume reinvestment of dividends and other distributions. In the past there have been problems with the accuracy of this downloaded data, but I have not seen any complaints recently. See this discussion
https://community.quicken.com/discussion/comment/20055944#Comment_20055944