Please allow a Annualized Rate of Return over a custom time period

LivingForEternity

Ever since Quicken started I've wanted a report that would tell me my investment performance in an account over a period that I specify as an annualized rate excluding deposits and withdrawals.

Like in reports, I'd like to select a period, Year-To-Date, last 12 months, custom, etc.. Then take how much value the account had at the start of the period and how much value it currently has and annualize the difference. It would be beneficial to have a yes/no option to include/exclude deposits and withdrawals. So if excluded, say I put in $100, that isn't counted as an increase in value, but if I invest the $100, the change in that investment is included. This would give me a simple way to see my investing performance. If I include the deposits then I can see the overall growth/decline.

If you know how to achieve this with Quicken as it is, please let me know.

Jim_Harman

It seems that a lot of what you are requesting is already available in the Investment Performance Report (IPR) and the corresponding Avg. Annual Return (%) columns in the Investing > Portfolio views.

The IPR does an Internal Rate of Return (IRR) calculation, equivalent to Excel's XIRR function. One caution is that because the return rate is annualized, if the analysis period is less than one year it assumes that the return will continue at the same rate for a full year.

Consider some examples:

1. An account starts with $1,000 in cash and on Feb. 5 (about 10% into the year) you add $100. The ending balance is $1,100.
   1. If the time period is 1/1 - 6/30 the Avg. annual return is 0%
   2. If the time period is Yearly and Current year, the gain is still 0%. The deposit is ignored regardless of the time period.
2. The account starts with a security holding worth $1000 and on Feb 5 its value increases to $1,100. The ending balance is again $1,100.
   1. If the time period is 1/1 to 6/30 the Avg. annual return is 21.06%. The annualized IRR calculation includes compounding and assumes that the return will continue at the same rate for a full year.
   2. If the time period is Yearly and Current year, the Avg. Annual Return is 9.97%.

The new Net Worth & Balances > Lifetime Overview report (Premier and up only) shows the annual dollar and percentage changes in the value of selected accounts including any deposits and withdrawals.

[ref. Brokerage 7 account in my Empty file a]