Money-weighted return (MWR) is an investment performance metric that measures the actual return earned by an investor after considering the timing and amount of all cash flows, including deposits and withdrawals. Unlike time-weighted return, money-weighted return reflects the personal experience of the investor.
Because contributions made during strong or weak market periods can significantly influence outcomes, MWR provides a realistic picture of how well an investor's money actually performed over time.
← Return to FAQ Home PageMost investors regularly contribute to their portfolios through monthly savings, retirement contributions, dividend reinvestment programs, or additional purchases. Some investors also withdraw funds periodically.
Money-weighted return incorporates all of these activities, helping investors understand the return they personally achieved rather than measuring only the effectiveness of the investment strategy itself.
For investors who actively add or remove funds from their portfolios, money-weighted return often provides one of the most meaningful measures of success.
Money-weighted return is commonly calculated using the Internal Rate of Return (IRR) methodology. The calculation identifies the rate of return that equates all cash inflows and outflows over the investment period.
Although this process can become complex, portfolio software can automate calculations and provide investors with accurate results.
Both metrics provide valuable insights, but they answer different questions.
Reflects the investor's actual experience, including cash flow timing.
Measures the effectiveness of the investment strategy itself.
Useful for evaluating personal financial progress.
Useful when comparing investment managers objectively.
Understanding both metrics allows investors to gain a more complete perspective on portfolio performance.
Value Investing Software helps investors organize investment records and monitor portfolio performance through meaningful analytics and historical information. Instead of relying solely on spreadsheets, investors can evaluate long-term results using centralized data.
Whether tracking retirement accounts, dividend portfolios, growth strategies, or multiple investment portfolios simultaneously, having organized records simplifies performance analysis.
By centralizing portfolio information, investors gain deeper insights into both investment performance and personal financial outcomes.
Many investment applications require recurring subscriptions to access advanced reporting and analytics tools.
Value Investing Software follows a different philosophy built around accessibility and investor empowerment.
Investor feedback helps shape future improvements, ensuring the software evolves according to actual user priorities.
Modern investors often access portfolio information from different devices depending on their needs.
Ideal for comprehensive portfolio reviews and performance analysis.
Monitor investments and review progress on the go.
Supports flexible workflows and connected experiences.
Access information even without constant internet connectivity.
Your investment records remain stored locally under your direct control.
Protect years of investment history and analytical data.
The combination of local ownership, cross-platform accessibility, and analytical capabilities creates an investor-friendly environment designed for long-term success.
Money-weighted return measures the actual return experienced by an investor by incorporating the timing and amount of deposits and withdrawals. It provides valuable insight into how effectively an investor's money has grown throughout the investment journey.
For investors making regular contributions or withdrawals, MWR often offers one of the most relevant views of personal financial performance.
Money-weighted return helps investors understand the real-world performance of their portfolios by considering cash flow timing. Value Investing Software supports this analysis through comprehensive portfolio tracking, dividend monitoring, historical records, local database storage, Android and desktop versions connected through REST API support, offline functionality, continuous improvements inspired by investor feedback, and a commitment to remaining free forever and for all investors.