Reason #3 - Fees, Dividends, Interest Earned, Re-investments, Cost-Basis, Realized vs. I would not recommend using this investment tracker unless you are comfortable using Excel and can identify and fix errors that may be introduced. Unfortunately, the ability to enter and edit formulas also makes a spreadsheet error-prone. I like to see and to try to understand the formulas so that I can better understand what is being reported. I like to try to understand how investments work, and that is why I like using a spreadsheet.
#Mkt calculation spreadsheet series
However, the XIRR() function lets you take into account a series of cash flows - such as making additional monthly investments. For a one-time investment, this results in the same rate as the CAGR formula (see my CAGR Calculator page). In this spreadsheet, that is calculated using the XIRR() function. Though there may be subtle differences or even major differences between accounts, especially when considering the effects of taxes, the simplest way I have found to compare different investments is to compare market value or total return to what I put into it (the total out-of-pocket investment).Īlthough there are many metrics that can be used to compare returns for different types of investments, my favorite is to use the effective annualized compound rate of return. Having a consistent way to look at return on investment makes it possible to compare real estate investments to stock brokerage accounts or 401(k) accounts or simple savings accounts. Reason #1 - A Consistent Way to Compare Different Types of Investments Below are a few reasons why I use this spreadsheet to track investments. I'm not suggesting that it is the best way or that it should be used in place of reports generated by the advisor or financial institution. I use a spreadsheet only as an ADDITIONAL way to track accounts. Why Track an Investment with a Spreadsheet? The spreadsheet and content on this page should not be used as financial advice.
For example, this spreadsheet does not distinguish between realized or unrealized gains.ĭisclaimer: This spreadsheet is NOT meant to be used for calculating anything to do with taxes.
It is up to the individual to make sure they understand what is being calculated. It doesn't track cost basis and should not be used for tax purposes.Īlthough some explanations are provided in the Help worksheet and in cell comments, the spreadsheet does not define every term and every calculation in detail. It boils everything down to tracking only what you have invested and the current value of that investment. This template was designed to provide a simplified way to track an investment account.
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