What are the formula for calculating ROI all dates (Total return all dates)

Discussion in 'Microsoft Money' started by rvsw@hotmail.com, Jul 19, 2006.

  1. Guest

    From http://money.mvps.org/articles/portfolio_columns.aspx, it says
    that dividends should be included in calculation of ROI all dates(Total
    return all dates)
    So the formula for ROI should be ((market price - purchase price)+
    dividend) / purchase price.
    Is this correct?
    However, what I am seeing is that ROI all dates is calculated as
    (market price - purchase price)/purchase price.

    Is there any other parameter that includes dividends also
     
    , Jul 19, 2006
    #1
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  2. Total Return - All Dates includes dividends. Check the transactions
    by clicking the [+] to see if there are dividends listed there.
    Experiment by adding a really big fake dividend. Then delete the
    fake.


    TR All Dates seems to be something like
    ((currentValue+amountReceived) /
    (amountSpent-amountReceived))-1 as a percentage. So if you are
    where you started, it would read 0%. If you lost all of your
    money, it would be -100%
    Gain could be a useful one, and %gain would be of doubtful
    usefulness.
     
    Cal Learner-- MVP, Jul 19, 2006
    #2
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  3. Guest

    Thanks for the response.
    a) This is what I did. Went to the portfolio screen. Clicked the [+].
    There is only a buy transaction. However, the cash account contains
    dividend transactions.
    b) What is the meaning of the term amount spent in your post below? Is
    it the money taken out from the account
    c) %gain and ROI all dates show the same values for each investment.
    However, the grand total row shows % gain and ROI all dates as
    different. (ROI is greater than %gain). This may be because ROI all
    dates possibly includes cash accounts (ie. any interest credited on the
    cash account) but % gain. However, I cannot confirm

    I am puzzled why microsoft money does not include description of how
    each parameter is calculated.
     
    , Jul 19, 2006
    #3
  4. You can delete/void those and replace them with Dividend
    transactions entered into the investment transactions.

    I was referring to the money you spent to acquire the investment. It
    may include other expense, but it usually just the Buys.

    %gain is weird, and can be lower than -100%. %gain is "gain divided
    by cost basis" as a percentage. As a test, enter a Sell all but 1%
    of your shares for 10% more than you paid, and you will get an
    obviously meaningless number. I suggest you configure that column
    out.
     
    Cal Learner-- MVP, Jul 19, 2006
    #4
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