Compounded Returns

[PrivateBanking]

I guess this may seem like a simple question, but would appreciate if
somebody can tell me how to calculate the Total compounded return.

Example:
Assuming there is a Mutual Fund that pays a different monthly
percentage returns, how do I calculate the compounded total returns (in
%) in a year?

Jan= 2%
Feb=2.5%
Mar=..

 

[Domenic]

Do you mean "average" monthly compounding return?

 

[Fred Smith]

Calculate the future value of a $100 investment for one year:

=100*(1+Jan%)*(1+Feb%)*...

The result, minus 100, is the annual return for the fund.

 

[Ron Rosenfeld]

I guess this may seem like a simple question, but would appreciate if
somebody can tell me how to calculate the Total compounded return.

Example:
Assuming there is a Mutual Fund that pays a different monthly
percentage returns, how do I calculate the compounded total returns (in
%) in a year?

Jan= 2%
Feb=2.5%
Mar=..

See the FVSCHEDULE function.

With your monthly percentage returns in A1:A12,

=-1+FVSCHEDULE(1,A1:A12) will give the effective annual percent return.

If you want the average monthly return, then

=NOMINAL((-1+FVSCHEDULE(1,A1:A12)),12)/12


--ron