[Alan]

Quote:

Originally Posted by jIMOh Yeah I think my forumula is wrong too. starting value 41202 ending value 33226 deposits 10741 I have the equation as [33226/ (41202+10741)]-1= -36.03% or starting value 167,685 ending value 120,496 desposits 27720 Which is [120496/ (167685+27720]-1= -36.29% Do both equations look accurate now?

I now get the same as you using your calculations but I think it is wrong.

I used the Excel IRR function with the 1st set of figures, assuming the $10741 deposit goes in 12 equal payments of $895 and I get -50.16%.

When I use my simple calculation I get -50.17%.

My simple calculation is as follows:

Gain = ending balance - starting balance - deposits
Avg balance = start +(end-start)/2
Return = Gain/Avg balance

Gain = 33266 - 41202 - 10741 = -18677
Avg = 41202 + (33266 - 41202)/2 = 37234
Return = -18677/37234 = -50.16%