# Using My Annualized Rate of Return Spreadsheet

Steven from ValueBlogReview sent me the following question in an email today:

“Do you know of a quick formula to figure out a per annum interest rate when multiple deposits are made at different times?”

I sent Steven straight to a post a wrote a few weeks ago on **how to calculate your return on investment**. I recommended that he check out the Microsoft Excel (MSFT) and Google (GOOG) Spreadsheet examples I included in that article. I wasn’t to sure that my post was all that clear, but Steven figured it out and even posted a story about his experience.

Steven decided to use my Google Spreadsheet and he even figure out how to customize it for his own use. I learned something new about Google Spreadsheets from his experience and I wanted to share his knowledge with you. Steven wrote:

“Before you can customize it, in the Google spreadsheet you will need to click on file in the upper right, select copy spreadsheet, and rename it… What you want to do is change the notes to reflect your own needs… This is a nice little sheet that George has and I recommend it for the new investor looking for a quick way to track their progress.”

Thank you Steven for sharing your experience with my Annualized Rate of Return spreadsheet.

What is the formula for the Real Rate of Return on Investments and Real Net Present Value?

I believe you can just subtract the rate of inflation from IRR to get the real rate of return. This might not be 100 accurate but it will get you real close to the actual real rate of return.

The real net present value is just the present value minus costs (giving you net)and then discounted by a real discount rate. The real discount rate is equal to the rate of time preference minus the rate of inflation.

The most common inflation rate used in the Consumer Price Index. You can get CPI numbers at http://www.bls.gov.

what is the FORMULA

for SPREAD SHEET to calculate annualize stock returns.

THANKS A MILLION.