Rate of Return

General TSP Discussion.

Moderator: Aitrus

Post Reply
Bubba823
Posts: 35
Joined: Wed Aug 23, 2017 8:16 am

Rate of Return

Post by Bubba823 »

For the smart people out there. How does one calculate the percent (%) of gain / loss for a specific period. I'm looking for the formula to get my TSP rate of return for 2022. Assuming my beginning balance on January 1, 2022 was $300,000, and my ending balance on December 31, 2022 is $250,000, how do I do it? Does the formula require subtracting contributions? I'm still making contributions. Thanks in advance.

User avatar
jimcasada
Posts: 292
Joined: Mon Jan 12, 2015 4:40 pm

Re: Rate of Return

Post by jimcasada »

It's easy for me, because I have two TSP accounts, and I always make the exact same changes to both. My old military account hasn't had any type of contributions or withdraws for at least the last 6 years, so don't have to figure in anything but my gains or losses of whatever funds I am in over time. Otherwise, I can't hardly make heads or tails of how to figure out such on this new TSP.gov website.

jimmyk
Posts: 26
Joined: Mon Dec 08, 2014 6:47 pm

Re: Rate of Return

Post by jimmyk »

This is how I would calculate it.
Starting balance =$300000
Contributions over the yr = $10,000
Ending balance = $250,000

Formula = ((Ending balance - contributions)-Starting balance) / Starting balance
($250000-$10000) = $240000

$240000-$300000 = -$60000
-$60000/$300000 = -0.20 x 100 = -20%

User avatar
jimcasada
Posts: 292
Joined: Mon Jan 12, 2015 4:40 pm

Re: Rate of Return

Post by jimcasada »

But what throws things off a bit, contributions made during the year earn at different rates, depending on when they were made. For example take this year for most folks, contributions made earlier in the year probably made less earnings than those contributions made later in the year. I think the easiest thing is to open a fantasy account here and make changes to it that exactly match your real account. That's what I do.

Bubba823
Posts: 35
Joined: Wed Aug 23, 2017 8:16 am

Re: Rate of Return

Post by Bubba823 »

jimmyk wrote: Wed Dec 14, 2022 7:53 am This is how I would calculate it.
Starting balance =$300000
Contributions over the yr = $10,000
Ending balance = $250,000

Formula = ((Ending balance - contributions)-Starting balance) / Starting balance
($250000-$10000) = $240000

$240000-$300000 = -$60000
-$60000/$300000 = -0.20 x 100 = -20%
That makes sense to me. I am only looking for a ballpark figure, so this works. Thank you!

jimmyk
Posts: 26
Joined: Mon Dec 08, 2014 6:47 pm

Re: Rate of Return

Post by jimmyk »

Sure. Jimcasada is correct though. There is error based on the return produced by contributions. What I posted was back of the envelope and ballpark.

User avatar
Scarfinger
Posts: 811
Joined: Mon Jan 30, 2012 12:00 am

Re: Rate of Return

Post by Scarfinger »

I took my year end balance for 2021 and my current balance today and put it in a % calculator

https://percentagecalculator.net/

I used the "What is the percentage increase/decrease" part of the calculator.

I am currently at (-) 4.9% for the year. Mainly because of contributions padding the loss. Otherwise I would be down closer to (-) 13% for the year.
I am just an average Joe. I have no clue to what the market will do.
TimboSlice wrote: "People really need to stop overthinking this."
Paul Merriman 2 fund strat: (age - 25) x2.5 = TDF + balance into S fund or variation of

User avatar
mhende2
Posts: 87
Joined: Wed Oct 12, 2016 12:32 pm

Re: Rate of Return

Post by mhende2 »

For most of us who are already retired it's definately not been a nice market this year, and not being able to add more funds to offset the drops makes it painful. Something to be prepared for and think about before retiring, the market doesn't always go up each year.
Let's go Brandon.
In investing, what is comfortable is rarely profitable.
-Robert Arnott

Post Reply

Fund Prices2024-04-12

FundPriceDayYTD
G $18.18 0.01% 1.19%
F $18.76 0.27% -2.42%
C $80.20 -1.44% 7.85%
S $78.58 -1.92% 1.92%
I $41.26 -1.44% 2.68%
L2065 $15.90 -1.49% 5.17%
L2060 $15.90 -1.49% 5.18%
L2055 $15.90 -1.49% 5.18%
L2050 $31.90 -1.21% 4.23%
L2045 $14.55 -1.14% 4.03%
L2040 $53.17 -1.06% 3.85%
L2035 $14.05 -0.97% 3.64%
L2030 $46.79 -0.89% 3.44%
L2025 $13.01 -0.47% 2.40%
Linc $25.41 -0.37% 2.04%

Live Charts

Pending Allocations

Under development. For now, you may view Pending Allocations by going to "fantasy TSP" and selecting "Leaderboard sort" of "Pending Allocations".