# Calculator for average annual total return

Does anyone know of a website that can help me with the following calculation?

A client has given me a total of \$407,000 not in a lump sum but on different dates.   \$100,000 in 5/2005 \$102,000 in 12/2005 \$205,000 in 12/2006   His account value now is \$430,000.   He said his average annual return is 3.5% which seemed low to me.   Can I calculate this on the internet somewhere or do I have to purchase a business calculator?   Thanks in advance for any valuable feedback.

Excel can handle that.

If your firm doesn’t provide detail performance reporting, you are behind the curve.  If a client came in with that kind of statement, within 10 seconds I could either prove or disprove it and tell him what worked and what didn’t for any period of time he’s had money with me.  Your bank should invest in something similar…it will pay for itself many times over.

Don’t forget to factor loads and commissions.

My first provides last 12 months, year to date, total return since inception and quarterly.   However, they do not readily provide annual average total return.

How can i do this on Excel?   scrim

I dont have my HP calc with me…but on the site below…I came up with 3.12%.

I used your montly dates....assuming client deposited the money on the 1st of the month.   http://www.showmethereturn.com/calculator.html

[quote=scrim67]My first provides last 12 months, year to date, total return since inception and quarterly.   However, they do not readily provide annual average total return.

How can i do this on Excel?   scrim[/quote]   I'm not a math major, but wouldn't (since inception/total # of days X 365) invested get you close?

I’d also observe that the recent slide notwithstanding, it appears that your bank’s manager selection and strategy is lacking.  I wouldn’t be very happy with that kind of performance either.

Thanks for the link…it appears it’s exactly what I’m looking for!!!

fyi,   this particular client has about 470,000 in October before the recent downturn.   His average annual return was showing about 10% as of the end of October.   Since the downturn his account is down to about \$430,000 which is about 9%.   Changes his annual average return to 3.26%.   Sad, but true.   He's about half in stocks and half in bonds   scrim

I like the calculator, but the only downside is that there’s a very limited number of cashflows you can enter