Comments on: Calculating stock or investment returns: the difference between ROI and IRR http://mindyourdecisions.com/blog/2008/11/13/calculating-the-rate-of-return-on-investments-roi-versus-irr/ Articles on game theory and personal finance Sat, 20 Mar 2010 11:33:15 -0500 http://wordpress.org/?v=2.9.2 hourly 1 By: Thiago Christofoletti http://mindyourdecisions.com/blog/2008/11/13/calculating-the-rate-of-return-on-investments-roi-versus-irr/comment-page-1/#comment-5817 Thiago Christofoletti Tue, 24 Nov 2009 12:44:43 +0000 http://mindyourdecisions.com/blog/?p=835#comment-5817 The most usefull post I found about this topic, after hours and hours of research. Thank you! The most usefull post I found about this topic, after hours and hours of research. Thank you!

]]> By: Victor http://mindyourdecisions.com/blog/2008/11/13/calculating-the-rate-of-return-on-investments-roi-versus-irr/comment-page-1/#comment-5710 Victor Fri, 16 Oct 2009 06:23:13 +0000 http://mindyourdecisions.com/blog/?p=835#comment-5710 I am just wondering, if we take the NPV of all cash returns as C1 in the ROI formula, would that resolve the issue of ROI not taking into account the concept of time? I am just wondering, if we take the NPV of all cash returns as C1 in the ROI formula, would that resolve the issue of ROI not taking into account the concept of time?

]]> By: numericalexample.com http://mindyourdecisions.com/blog/2008/11/13/calculating-the-rate-of-return-on-investments-roi-versus-irr/comment-page-1/#comment-5244 numericalexample.com Sat, 09 May 2009 12:36:06 +0000 http://mindyourdecisions.com/blog/?p=835#comment-5244 The explanation of the difference between APY and ROI is very useful. For ignorance and convenience many people, like me, use the term ROI when they actually mean APY or IRR. As you have explained APY/IRR is what you usually want to compute. Doing these calculations by hand this can be difficult and/or time consuming. Therefore I have made several free online calculators that can be used to compute the APY on savings and brokerage accounts, see for instance: http://www.numericalexample.com/content/view/85/27/ and http://www.numericalexample.com/content/view/43/27/ The second calculator is similar to your spreadsheet method. Hope this helps. The explanation of the difference between APY and ROI is very useful. For ignorance and convenience many people, like me, use the term ROI when they actually mean APY or IRR.

As you have explained APY/IRR is what you usually want to compute. Doing these calculations by hand this can be difficult and/or time consuming. Therefore I have made several free online calculators that can be used to compute the APY on savings and brokerage accounts, see for instance:
http://www.numericalexample.com/content/view/85/27/
and http://www.numericalexample.com/content/view/43/27/

The second calculator is similar to your spreadsheet method. Hope this helps.

]]> By: John http://mindyourdecisions.com/blog/2008/11/13/calculating-the-rate-of-return-on-investments-roi-versus-irr/comment-page-1/#comment-4288 John Sat, 03 Jan 2009 14:39:13 +0000 http://mindyourdecisions.com/blog/?p=835#comment-4288 Thank you for this information. It will help me track the ROI on our retirement accounts. Cheers, John P.S. I like "messy" computations :-) Thank you for this information. It will help me track the ROI on our retirement accounts.

Cheers,

John

P.S. I like “messy” computations :-)

]]> By: Presh Talwalkar http://mindyourdecisions.com/blog/2008/11/13/calculating-the-rate-of-return-on-investments-roi-versus-irr/comment-page-1/#comment-3630 Presh Talwalkar Mon, 17 Nov 2008 10:05:59 +0000 http://mindyourdecisions.com/blog/?p=835#comment-3630 Thanks for the tips on those websites...Yes, it is a good idea to get computers to do the messy computations. Thanks for the tips on those websites…Yes, it is a good idea to get computers to do the messy computations.

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