How to Calculate YTD Returns

It is important for all investors to know how to calculate YTD returns from monthly data. Many investors receive monthly account statements from their brokers, but these statements do not always show YTD performance. Consequently, it can be difficult to determine how your investments have performed on an aggregate basis. Calculating YTD returns is relatively easy if you have monthly performance data and Microsoft Excel.

Things You'll Need

• Monthly performance data for your investments
• Microsoft Excel

Instructions

1. Convert all monthly performance data from percents to decimals and enter the figures into Excel. For example, suppose you have 3 months of returns data for your investments: 1.51%, -1.96% and 1.12%. Convert these numbers to decimals as follows: 1 + .0151 = 1.051; 1 - .0196 = .9804; 1 + .0112 = 1.0112.

2. Multiply these numbers together to get your YTD return. In this example, the YTD return equals 1.051 x .9804 x 1.0112 = 1.00635. This calculation can be performed easily in Excel using the "Product" function. Type =PRODUCT( and select the cells with the monthly numbers in it, close the parenthesis and press enter to calculate the YTD return.

3. Subtract 1 from the YTD return number calculated in Step 2 and multiply it by 100 to convert the figure to a percent: 1.00635 -- 1 x 100 = .635%.

Tips & Warnings

• Be sure to account for dividends when computing your YTD returns. Dividends are not reflected in the capital appreciation return figures, but they are an extremely important source of return for most investors.

References

• How to Calculate Returns Using Monthly Data

Resources

• Personal Finance 101