Simple Dietz Method Calculator
Formula – How to calculate the Simple Dietz Method
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%.