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Money Weighted Return Calculator

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The Money Weighted Return Calculator is a handy online tool designed for investors to measure how well their investments have performed over time. This calculator takes into account not just the gains or losses on your investments but also when and how much money you put in or take out. It's like a personalized report card for your investments, showing you the return based on your specific actions.

Purpose and Functionality

The Money Weighted Return (MWR) is a way to see how your investments have done, considering the timing and amount of your deposits and withdrawals. It's different from other return measures because it reflects the impact of your investment decisions. Whether you added more money during a dip or took some out during a peak, the MWR calculator factors all these in to give you a return rate that's unique to your investment journey.


The Money Weighted Return Calculator is like a smart scale that tells you how much your money has grown in a savings jar, taking into account every time you added or took out some cash. It looks at when and how much money you moved in or out and then tells you, "Given all these moves, here's how fast your money grew or shrank overall."

The money-weighted return formula is:

MWRR=(Beginning ValueEnding Value​−1)×100%

(Beginning ValueEnding Value​−1)×100%

This formula calculates the rate of return taking into account the timing and amount of cash flows.

How It Works: Inputs and Calculations

To get your MWR, you need to provide some details:

  • Initial Investment: How much you first put into the investment.
  • Subsequent Cash Flows: Any additional money you added or took out, and when these transactions happened.
  • Ending Value: What your investment is worth at the end of the period you're looking at.

The calculator then crunches these numbers, taking into account the size and timing of each cash flow, to figure out your personalized rate of return.

Step-by-Step Examples

Let's break it down with an example:

  1. Initial Investment: You start with $10,000 in a mutual fund.
  2. Year 1: You add another $2,000.
  3. End of Year 2: Your investment is now worth $15,000.

You input these into the calculator, and it tells you your money-weighted return, considering the exact times you added and withdrew money.

Relevant Information Table

Initial InvestmentYour starting amount in the investment.$10,000
Subsequent Cash FlowsAdditional money in or out.+$2,000 (Year 1)
Ending ValueWhat your investment is worth at the end.$15,000 (End of Year 2)

Conclusion: Why It Matters

The Money Weighted Return Calculator gives you a tailored view of your investment's performance. It's not just about how the investment itself did, but how your decisions along the way influenced your returns. This insight can be incredibly valuable, helping you understand the impact of your investment timing and amounts, and guiding your future investment strategies. Whether you're a seasoned investor or just starting, this calculator can shed light on the effectiveness of your investment approach.

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