- Subperiods
- 2
- Covered years
- 2
- Cumulative linked return
- -4 %
- Geometric annualized return
- -2.0204 %
- Arithmetic mean per subperiod
- 0 %
- Cumulative log return
- -0.0408
Equal-length subperiods. Enter returns already measured around external cash flows; deposits are not returns. Annualization is a historical rate conversion. A log return is undefined at a complete loss.
Each point is the entered subperiod return applied to the preceding wealth index, without external cash flows. Lines join recorded period ends.
View the chart values
| Series | Subperiod end (0 = initial) | Wealth index |
|---|---|---|
| Linked wealth | 0 | 100 |
| Linked wealth | 1 | 120 |
| Linked wealth | 2 | 96 |
On this page
Use returns rather than owner contributions
The tool multiplies equal-period growth factors. It does not infer returns from account balances or adjust deposits automatically. Enter percentages such as 20, −20 and specify the number of these equal periods in one year.
Read the outputs as distinct measures
The default annual observations +20% and −20% end at index 96, giving cumulative return −4%, annual geometric rate -2.02041% and arithmetic mean zero. The chart retains the intermediate index 120, which the endpoint rate omits.
Handle a complete loss explicitly
A terminal −100% produces zero wealth and −100% linked simple return. A finite log return is unavailable. The tool rejects later returns after that complete loss because the model has no new positive capital base. Returns below −100%, invalid frequency and numerical overflow are also rejected.
Keep annualization historical
The annual rate is a conversion from the covered equal-period horizon. It is not a forecast or a pass/fail appraisal of a strategy. Uneven-date observations need an appropriate elapsed-time method outside this frequency-only model.