# Weighted average. A google sheets template for profit calculation

If you invest £100 for 360 days and make £10 profit then in almost a year you have made 10%. Easy

But say 5 days before year end you invest an extra £1,000.

You then find after 365 days you have made £20 profit. But is that good? 20/1,100 is 1.8% but that’s just obviously not right since you only held the £1,000 for 5 days, but the £100 for 365.

You want to find effectively what that £1,000 is worth. So if you divide it by 365 and held it for 5 days its like holding £13 for a year.

So in reality your profit of £20/100+13 = 17.7% weighted average.

This is where I’m sharing my way of monitoring profit.

It works for withdrawals and of course for profits over 1 year. You simply record each capital transaction (money in or out of freetrade) and at any time just dump your current profit in to find out how well you are doing.

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This is great, thank you for sharing!

That looks really useful, thanks for sharing. When I get home this evening I’ll start plugging my own numbers in and see how I’m doing with my investments.

(If I could make one small suggestion, for clarity’s sake you could change step 1 of the instructions to “‘Make a Copy’ of this document from the file menu”.)

Done @HoldenCarver

You are welcome @TomShepherd

@Rollingskies remarkable tool. It can give insights on returns on deposited funds in Freetrade which is awesome. I suppose it can also be used to track the performance of individual investments within the platform but I can’t get my head around on how to see it. Am I making any sense here?

Edit: Maybe I could use column F to add a description of what the action refers to?

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Yes you could do that. You would list stocks on the columns as a b c etc and then date of investing on each stock as rows 1 2 3 etc. But very OCD.

I would have to use double entry for every buy/sell action otherwise I would completely mess up the totals, right? If yes, very much indeed, (OCD) but worth it. Based on the intensity of my activity it would take up to 2 minutes per month. It’s more than what I can spare but, no pain no gain

Is there a good way to handle reinvesting dividends? These were not fresh deposits of cash, but they were new buys, sometimes in the same stock, sometimes in new stock.