Calculate Annualized Returns for Investments in Excel

Use Excel to determine the compounded annual returns for investments held less than or greater than 1 year. #excel #investments #annualizedreturn

[ashok]

Very well explained -short, simple and crispy. Thanks for uploading "Smart Man"

[ncon]

So how do you calculate the total average growth across all eight lines? Do you sum the "Investment", "Value" and "Gain" and use an average of the "Days Invested"?

[adesoyetoby]

Hey Ralph, I think you calculated for rate of return instead of total return there

[robertdonato]

how would you calculate the total annual return for your whole portfolio? Would it be a weighted average (sum of individual Invested amount*individual Annual return then divide by total invested)?

[sameriwata]

basic excel user here --- will look into what your exponent does in excel but if you could enlighten me thatd be awesome! also why the -1 at the end of the calc for the annualized return?

[ManikGupta]

Hi - Thanks for the video. I had a query what if the investment amount was different and then I wanted to calculate my combined annualized return for ALL of the investments together (in this case all 8 investments). Thanks

[jxzx]

Tomando como base este ejemplo.. cuál sería el porcentaje total para un dato final anual de todo el portafolio

[laurasimms]

Thank you. This was supremely helpful. I didn't want to locate a financial calculator and thought somebody ought to have been able to explain this in Excel. I wonder why Excel doesn't make this easier (with a simple function).

[dominicmascarenhas]

How to calculate Annualized Return on Total Transactions

[rblowery]

Great video! And calculations were right on the money!

[JNUC]

Very helpful. I wonder if you wanted to include dividend payments, how that might be added to the spreadsheet.

[dhruvchampaneria]

Didn't get that exponent part? What does it says?

[malikawan]

Can you share me the google excel sheet please

[MrMartell]

If you use 365.25 the calculation would be more accurate, taking into consideration leap years, although century years are not leap years unless are divisible by 400 (2000 was leap year, 1900 wasn't). My friend and I cracked the formula and what you are showing is 100% correct because it calculates APY (Annual Percentage Yield) or Compounded Annual Growth Rate (CAGR). The CAGR formula is a way of calculating APY!

[arnavabichandani]

Hi, to calculate annualized return why wont this work --> ((1+total return/days invested)^365 -1)*100. A bit confused here.
So, in this way I get the daily return first and then I annualize it by ^365

[stefanotrombetta]

Hey Ralph, nice video! I have a question. If I do a monthly investment in the same stock, do i do the same thing you did or I can do a weighted average of all the investments and as investment date, I simply put the date of the first investment?

[mmdkur]

Thank you so much, very useful and can't find the same concept that easy elsewhere. Can the additions and withdrawals from investment has the same formula ?

[vman]

What does annualized return mean? Would be helpful to know this rather than just learning how to plug formulas into Excel

[debchak]

I am looking for building ticker wise (i.e., stock name wise) returns in excel .. so basically need XIRR for each stock in an entire portfolio. any idea how to develop it ?

[ramgarigipati]

Thanks you. This really looks good. But one thing missing is, what is overal anualized of all investments together? May i know how do we calculate for overal anualized return for all investmentes? I know here you explained anualized return for each line item.