Time-Weighted Return Calculator

About this calculator

Time-Weighted Return (TWR) measures investment performance by geometrically chaining (compounding) the returns of consecutive sub-periods, which strips out the distorting effect of when money was deposited or withdrawn. This makes it fundamentally different from a money-weighted return like IRR, which is sensitive to the size and timing of cash flows.

TWR is the standard required by the Global Investment Performance Standards (GIPS) for reporting portfolio manager performance, precisely because it isolates the manager's investment decisions from the investor's decisions about when to add or remove capital — two managers with identical stock-picking skill but different client cash-flow timing would show different money-weighted returns but identical time-weighted returns.

This calculator chains up to three sub-period percentage returns into a single time-weighted return, converts that into an annualized-equivalent rate, and shows what a $10,000 investment would have grown to, giving you a clean way to evaluate performance independent of your own deposit and withdrawal timing.