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Simple Dietz Method Calculator

LAST UPDATE: September 28th, 2018

Simple Dietz Method Calculator

Formula

Portfolio Rate of Return = (Beginning Market Value – Ending Market Value – Cash Outflows) / (Beginning Market Value + (Cash Outflows / 2))

Example

In a portfolio, beginning market value is $1000, ending market value is $7,500, and there are $2,000 of external outflows from the portfolio.

Rate of Return = ($1,500 – $1,000 – $175) / ($1,000 + ($175 / 2)) = $325 / ($1,000 + $87.50) = $325 / $1,087.50 = 0.2989

Therefore, the rate of return is 0.2989, or 29.89%.