Annual Performance with Monthly Contributions

Hi there,

We use a valuation spreadsheet for clients.

We have 2 values per year, 01/01/yyyy and 31/12/yyyy.

What I want to do is get the growth/loss between these two values. Additionally, each year a client may make 1, 2, 3 or more contributions a year. The extra gain will show the growth rate of the investment to be wrong.

I wont to show the growth rate between the two values, but only the growth, not the contributions.

Example:

01/01/2012 = £1000
31/12/2012 = £5000

Contributions this year:

March = £1000
May = £1500
October = £750

Yes the rest of the money is made up of growth, but between January and March the value was £1000, then between March and May was £2000, May and October was £3500, then October and December was £4250.

It is stepped growth.


I hope that makes sense.

No, becuase that would mean that the contribution would have been made 01/01/2012... you are getting growth on the contribution throughout the year, whereas in reality contribtuion are made throughout the year.

So using the example above, i would be getting growth between January and March of ***% on £1000, plus getting growth of the extra £1000 between March and May as well as the original £1000