Thursday, 30 April 2009 19:22
This calculator computes the result of equity transactions on the value and ROI of your investment portfolio. This is the extension of the calculator ROI of an equity transaction for multiple transactions and multiple instruments.
Enter an initial balance, interest rates (credit/debit) and your transactions. It is also possible to enter coupon interest and dividends as transactions. Click then on Compute. The tab Output shows an overview of the value of your portfolio, the costs, the interest received or paid and the ROI.
The computation produces two time graphs. The top graph shows the value of the portfolio, the cash part and the investments. The second graph shows the value of each (risk) category of your investments.
See also the tab Instructions and the following examples:
|Initial value investments:|
|Final value investments:|
|Minimum value investments:|
|Maximum value investments:|
|Average value investments:|
|Initial cash balance:|
|Final cash balance:|
|Minimum cash balance:|
|Maximum cash balance:|
|Average cash balance:|
|Initial total value:|
|Final total value:|
|Initially total invested amount:|
|Minimum total value:|
|Maximum total value:|
|Average total value:|
|Gross dividend/coupon interest:|
|Net dividend/coupon interest:|
|Net profit (initial value):|
|Initial value ROI (%):|
|Initial value ROI (%/year):|
|Net profit (with costs):|
|ROI (with costs) (%):|
|ROI (with costs, %/year):|
- Enter the initial balance and the start and end date.
- Add interest rates with the button (+) after Add interest date. Add interest rates for both credit and debit balances. The interest rates are based on 365 days per year./
- Add Investments. From each investment you can then add one or more transactions.
- The computation is triggered by clicking the button Compute. The results are in the tabs Output and Diagrams.
- At most 100 transactions, 50 interest rates, 30 different tickers and 10 different categories are allowed.
- Interest rates, investments and transactions can be removed by clicking on the corresponding minus (-) button.
- In all numeric fields you can enter expressions.
- Before entering transactions you have to assign a category to the name of an investment (ticker). A cateogory can be for example "utilities", "telecom", "emerging markets", "bonds", "options", etc. Such a combination of ticker and category can be entered by clicking on the plus (+) button next to Add investments.
- Enter the name of the share or ticker and the category in the new row. Each share may belong to at most one category !
- In the new row you can enter costs and the date as well. This costs and date will be copied when clicking on the button Create Transaction.
- If the checkbox Price Input is checked then the transactions created with the investment typy will have price input. Otherwise no price input field will appear and the created transactions will be interpreted as costs, cash dividends, or coupon interest.
- After entering input for an investment, a ticker and a category, transactions can be created by clicking the button Create Transaction. After creating a transaction input has to be entered for it.
- The ticker can not be changed inside the transaction. The category can be changed: an input box will appear after double clicking a category. In that case the category will be changed for all other transactions with the same ticker automatically.
- For transactions with price input enter the number of shares, the price per share, the transaction costs and the spread. The spread is the difference between bid and ask price and acts as a hidden cost. The computation keeps track of these hidden spread costs.
- For a buy transaction enter the number of shares as a positive number. For a sell transaction enter the number of shares as a negative number.
- For transacties without price input, such as cash dividends enter the gross amount, without any costs substracted. The costs can be entered in the input field next to the amount field.
- Stock dividends can be entered as a transaction with a price. Enter the current share price on the dividend date. As costs enter the total value of the stock dividend but then with a minus sign. In this way the computation adds shares without changing the cash balance. Otherwise the calculator discards these negative costs for the computation of the total costs.
- Costs can be entered separate from any transaction as a transaction without a price per share with a field Amount equal to zero.
- The calculator keeps track of hidden spread costs. These spread costs are not used for computing the values or the ROI.
Determine the initial balance
This calculator requires an initial balance as input. The ROI is computed based on this intial balance. Sometime users want to calculate the ROI related to a number of transactions rather than the ROI related to an initial sum of money. Such a situation can be a simple buy-sell cycle. In that case there are two ways to set the initial balance:
- Enter the initial balance as zero or equal to the cash balance on the first day. Enter the initial investment on a day just before the start date.
- Otherwise it is also possible to enter the initial transaction on the start date. Add the amount spent for this transaction to the initial balance. This amount appears after a computation using the first method at field Value transactions on start date plus additional costs. The advantage of this second method is that the transaction date of the initial transaction does not need to be moved to one day before the start date.
Value, costs and ROI computations
- If multiple transactions with the same ticker are entered on the same day then the calculator uses the share price of the transaction most down the list.
- Negative costs are neglected in the computation of the total costs.
- The calculator computes the values of the transactions with price per share per share before the start date. The calculator uses these transactions to compute the Return on Investment from the total value of the portfolio and the originally total invested amount at the start date. However the calculator does not use these transactions for computing the initial balance.
- Transactions at the start date itself will be deducted from the initial balance.
- Two kinds of Return on Investment (ROI) are computed. The first ROI is based on the total value at the end of the start date. The second ROI is based on the value at the end of the start date plus all transaction costs up to and including the start date. This second ROI is usually a better measure for the success of your asset management.
- The averages of the value of the investments, the cash balance and the total value are averages over time.
You can save your input to an HTML file by clicking the button Save input as HTML. In the tab HTML Input you can load previously saved input into the calculator.