TWR and XIRR return calculator

Enter your starting capital, dated deposits and withdrawals and the account value — the calculator shows the strategy return (TWR), the return on your money (XIRR) and profit net of deposits.

Return with deposits and withdrawals

The amount in the account at the start — your first contribution.

Deposits and withdrawals

Amount: a deposit without a sign or with «+», a withdrawal with «−». Value — what the account was worth right before the operation, excluding its amount. Empty rows are ignored; up to 50 rows.

Operation 1
Account equity or portfolio value on that date.
+4.50%

TWR for the period — strategy return

+1.60%

XIRR per year — return on your money

TWR per year
+4.50%
«Start vs end»
+52.00%
Profit
+200
Contributed: start and deposits
15,000
Withdrawn
0
Term, days
365

«Start vs end» counts deposits as income and withdrawals as losses, so it cannot be trusted once money moves in or out: the return is TWR and XIRR.

XIRR is 2.90 pp below annual TWR: larger amounts arrived before weaker periods — the timing of deposits and withdrawals cost part of the return.

How to fill in the form

  • Start — the date and the amount in the account on that day. The calculator treats it as your first contribution.
  • Deposits and withdrawals — one row per operation: the date, the amount (a withdrawal with a minus sign) and the account value right before the operation, excluding its amount. Rows can be added and removed, up to 50 in total; a row with a zero amount is simply the account value on that date.
  • End — the date and the account value with open positions at the current price.

Dates go in order and values must be above zero. Dividends and coupons left in the account are income, not deposits; fees are not entered separately — they are already in the account value.

How the calculator works

  • TWR (time-weighted return): TWR = (1 + r₁) × … × (1 + rₙ) − 1, where rᵢ is the return of the sub-period between operations: the value before the next operation over the value after the previous one. Per year — (1 + TWR)^(365 / days) − 1, and only for a term of 365 days or more: +3% in two weeks would annualize to 116%, which is compounding arithmetic, not a return.
  • XIRR (money-weighted return, MWR) is the rate r at which Σ Flowₖ / (1 + r)^(daysₖ / 365) = 0: the start and deposits enter with a minus sign, withdrawals and the final value with a plus sign. Days are divided by 365, and the equation is solved by Newton's method starting at 10%, like the XIRR function in Excel. If it does not converge (Excel then returns #NUM!), the calculator finds the root by bisection — halving the interval. The example from Microsoft's help — a 10,000 investment and four payments from March 2008 to April 2009 — gives 37.34%, the same as the help. You can cross-check in a spreadsheet with the template from «Investment tracking: spreadsheet or service».
  • «Start vs end» = (End − Start) / Start, Profit = End − (Start + deposits) + withdrawals.

Check it against the article

The calculator opens with the example from «Portfolio return with deposits: TWR and XIRR explained»: 10,000 on January 1, 11,000 by July 1 plus a 5,000 deposit, 15,200 by year end (in the form — January 1 of the next year, exactly 365 days). The result is TWR +4.50%, XIRR +1.60% per year, «start vs end» +52% and a profit of 200. Enter 9,000 before the deposit and 15,400 at the end to get the second example: TWR −1.00% and XIRR +3.20%. Why they differ and which return to look at is covered in the article.

How Davinchu calculates it

In the calculator you have to find and enter the value before each operation yourself. In Davinchu a portfolio in «Investments» records its value every hour, and TWR is calculated from these snapshots: a deposit, a purchase with new money or an imported position is a cash flow, not income. The «Overview» tab shows «TWR return» and «XIRR / MWR» side by side — XIRR appears once the portfolio has 30 days of history. The «Analytics» tab adds monthly returns and a benchmark comparison (BTC, ETH or 60/40 BTC-ETH), and the «Investor report» shows both returns with the methodology and downloads as a PDF. «Investments» is on every plan — more on the «Davinchu for stock investors» page.

For trading accounts, «Growth» in account analytics is compounded by year: deposits and withdrawals are not counted as profit, and a withdrawal does not reduce the base. The Free plan connects two accounts at no cost.

FAQ

Questions and answers

How do I calculate the return of an account with deposits?

In two ways. TWR cuts the term into sub-periods between deposits and withdrawals and chains their returns — that is the quality of the investments. XIRR finds the annual rate at which your contributions grow to the final value — that is the return on your money. A simple «start vs end» counts deposits as income and overstates the result.

What is the difference between TWR and XIRR?

TWR does not depend on when and how much you contributed: it is used to judge a strategy and compare it with an index. XIRR accounts for the timing and size of contributions and shows what happened to your money. In the article example TWR is +4.50% and XIRR is +1.60%: the 5,000 arrived before a weak half-year.

Will XIRR match Excel?

Yes, when Excel finds an answer: the calculator works like the XIRR function — days are divided by 365 and the equation is solved by Newton's method starting at 10%. On the example from Microsoft's help both give 37.34%. When deposits and withdrawals alternate, the equation can have several roots — the calculator shows the one Newton's method reaches from 10%, as Excel does, and if the method does not converge (#NUM! in Excel), the root closest to 10%. In Excel, enter the start and deposits with a minus sign and withdrawals and the final value with a plus sign.

Why is TWR not annualized for a term under a year?

Annualizing a short term is compounding arithmetic, not a forecast: +3% in two weeks turns into 116% a year. So annual TWR is shown from 365 days. XIRR is an annual rate by definition, and for a term under a year the calculator flags it.

Where do I get the account value before a deposit?

From the broker's or exchange's statement for the day of the operation, or from the terminal — account equity before the credit. If there is no value for that date, TWR cannot be exact — rely on XIRR then: it needs only the dates and amounts of contributions and the final value. In the calculator, enter an approximate value before the operation — XIRR does not depend on it, and TWR will be approximate.

How does Davinchu calculate portfolio return?

A portfolio in «Investments» records its value every hour, and TWR is calculated from these snapshots: a deposit, a purchase with new money or an imported position is a cash flow, not income. «XIRR / MWR» appears after 30 days of history, and the «Investor report» shows both returns with the methodology.

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