return-calculations

What problem does it solve?

This Skill helps users understand and calculate various investment return metrics, clarifying performance and growth over time.

Core Features & Use Cases

• Calculate Key Metrics: Compute Time-Weighted Return (TWR), Money-Weighted Return (MWR/IRR), Compound Annual Growth Rate (CAGR), and simple holding period returns.
• Understand Return Types: Differentiate between arithmetic, geometric, and log returns, and learn when to use each.
• Annualize & Link: Convert returns across different periods and link sub-period returns for cumulative analysis.
• Use Case: A user wants to know the true performance of their investment portfolio over the last year, considering both gains/losses and any deposits or withdrawals they made.

Quick Start

Calculate the compound annual growth rate for an investment that grew from $10,000 to $16,105.10 over 5 years.