Money Weighted Rate of Return (MWRR) Calculator
Calculate your annualized IRR / MWRR based on actual cash flow timing. This method reflects how your contributions and withdrawals impacted your return.
Cash flow sign convention: Use investor perspective — money you invest is negative (outflow), money you receive is positive (inflow).
Intermediate Cash Flows (optional)
What is Money Weighted Rate of Return?
The Money Weighted Rate of Return (MWRR) measures performance while accounting for when money enters and leaves an investment account. In practice, MWRR is the same idea as an internal rate of return (IRR): it is the annual rate that sets the net present value of all cash flows to zero.
If you make large deposits before a market decline, your MWRR will usually be lower. If your biggest contributions happen before strong gains, your MWRR will usually be higher. That makes MWRR a practical “what did I earn?” metric.
MWRR vs Time-Weighted Return (TWRR)
Money-Weighted Return (MWRR)
- Includes the impact of cash flow timing.
- Best for evaluating your personal investing experience.
- Sensitive to large deposits and withdrawals.
Time-Weighted Return (TWRR)
- Removes the impact of investor cash flow timing.
- Best for comparing manager skill across portfolios.
- Common in fund fact sheets and institutional reporting.
How this calculator works
This calculator takes:
- A beginning value and date,
- Any number of intermediate cash flows, and
- An ending value and date.
It then solves for the annualized discount rate that makes the present value of all cash flows equal to zero. That annualized rate is your MWRR.
How to use it correctly
1) Use consistent signs
- Deposit/contribution: negative (you pay in)
- Withdrawal/distribution: positive (you receive cash)
- Ending value: usually positive
2) Enter exact dates
MWRR is date-sensitive. A contribution made in January is treated differently from one made in December, even if the amount is the same.
3) Include all major cash movements
If you skip large deposits or withdrawals, your result can be materially wrong. Include transfers, fees (if relevant), and any final liquidation value.
Example
Suppose you invest $10,000 on Jan 1 (enter -10000), add $2,000 on Jul 1 (enter -2000), and your account is worth $13,500 on Dec 31 (enter 13500). The calculator returns an annualized MWRR that reflects both market performance and your cash flow timing.
Important interpretation notes
- MWRR can differ sharply from benchmark returns if your contribution timing was unusual.
- Multiple sign changes in cash flows can theoretically produce more than one IRR solution.
- If all cash flows are only positive or only negative, IRR/MWRR is not defined.
Frequently asked questions
Is MWRR annualized?
Yes. The calculator outputs an annualized rate, plus an equivalent cumulative return over your exact period.
Can I use this for private investments?
Yes. MWRR is commonly used for private equity, real estate cash flows, and irregular contribution schedules.
Why is my result negative?
A negative MWRR means the overall cash flow pattern implies a loss, considering both performance and timing.
Bottom line
If you want a realistic answer to “How did my money actually do?”, use MWRR. It is one of the most practical performance metrics for real-world investors making contributions over time.