Annualised Percentages

**mick2** · 10-15-2009, 01:19 AM

Hi,

I am monitoring the balance in my Allocated Pension fund, via the WWW.

In particular, I am recording the profits (disregarding costs, outflows, etc.) as ANNUALISED PERCENTAGES (a new line, for each week).

My formula is:

=(accumulated profits/principal)*(365/elapsed days)

Questions:
Will my formula remain valid, when “elapsed days” exceed 365?

If not, is there a FUNCTION that can handle my problem. And

What would the function’s ARGUMENTS be?

Cheers,
Mick2

**arthurbr** · 10-15-2009, 03:28 AM

To best describe or illustrate your problem you would be better off attaching a dummy workbook, the workbook should contain the same structure and some dummy data of the same type as the type you have in your real workbook - so, if a cell contains numbers & letters in this format abc-123 then that should be reflected in the dummy workbook.

If needed supply a before and after sheet in the workbook so the person helping you can see what you are trying to achieve.

Doing this will ensure you get the result you need!

**MickG** · 10-15-2009, 08:57 AM

Your formula just gives you the Interest Rate Return for a Fraction of a Year (Simle interest).
In order to give yourself an idea of the "Annual" Rate of interest.i.e. (What the Interest Rate would be if the total (Principle + Interest) for each year was compounded). You would need to Find the Total returns over a set period.
And then Find the Interst rate that was Compounded over that period to Give you that Return.
NB:- This Annual Rate enables you to compare (Like for Like) your returns against Bank/ Building Society Rates.

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NB:- With your spreadsheet you need to Capitalize each year i.e Total the Principle and Interest each year and start the calculation again.
As your Returns could go down as well as up it may be better to do an overall calculation with the formula. above
Regards Mick