Calculating the total rate of return on a chain of returns produces a time weighted rate of return. I covered this in my post “Time & Dollar Weighted Rates of Return Calculator“. In this spreadsheet I have segregate the time weighted return into an easier calculator for someone interested in taking their annual, monthly, quarterly, etc. rates of return over time and calculating the annual rate of return for the total period. There are two formulas I have used in the past to do the calculation. One is an array formula and one is not. This spreadsheet uses the non array formula which incorporates the Excel built in function “FVSCHEDULE”.
The calculator is simple. Just add the rates of return in the yellow cells and tell the calculator what times periods the rates are for, using the drop down box. The formula calculates an APY (annual percentage yield) and then calculates the equivalent APR (annual percentage rate). Clicking the green button clears the yellow data cells: