Improved returns calculations

While working on the article about return calculations I realized that some things could be improved in Capitally:

  • remove transaction discount or premium from TWR - include only the price movement
  • track cash in & out flows for ROI so reinvesting is not double-counted
  • always annualize annual IRR - currently it’s not if under one year
  • allow annual IRR and CAGR to be used for main return (and annualize benchmark then)
  • use more detailed labels so it’s more obvious what’s included (nominal, total, after-tax)
  • optional: allow to remove fixed income from returns

The article I’ve mentioned is now live - Investment performance measurement methods - Formulas with Examples | Capitally

This is now released!