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Money weighted return example

Money weighted return example: calculation method, required inputs, worked check, limitations and a link to IRR Calculator. Reviewed 25 September 2026.

By Uddhav Gopani, FounderPublished 25 September 2026Reviewed 25 September 2026

For “Money weighted return example”, the linked IRR Calculator is relevant because Free, browser-based IRR Calculator.

What this specific question is asking

Treat the output as a consequence of the setup. For this query the setup is equal-period cashflows (comma or newline separated) — verify each for unit, period and meaning, then let IRR Calculator do the arithmetic.

Validate by perturbation: nudge equal-period cashflows (comma or newline separated) by ten percent and watch the output. A result that barely moves — or jumps wildly — usually means a wrong unit or period, not a broken formula.

Inputs to verify

Verify equal-period cashflows (comma or newline separated) before calculation; if this value uses a different unit, period or definition, convert or restate it first.

Step-by-step check

Enter the period-zero cashflow first, usually a negative investment.
Add each subsequent period's cashflow, separated by commas or new lines.
Keep the periods equal, since IRR assumes a regular interval.
Tap Calculate to see the internal rate of return per period.

Worked example and sanity check

As a worked reference for “Money weighted return example”, Worked example If 100,000 invested returns 120,000 in one year, the IRR is (120,000/100,000) − 1 = 20% . Multi-year cash flows are solved iteratively.

Interpreting the result

So what does the number mean? In the worked example the calculation produced (120,000/100,000) − 1 = 20%. A result in that range is plausible for this kind of input; if your result lands far from it, revisit equal-period cashflows (comma or newline separated) first — it is the input most often entered on the wrong basis. Read the magnitude before the decimals: a result ten times too large or small almost always means a unit or period slipped, not that the formula failed.

Reviewed 25 September 2026

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Use the IRR Calculator

Open IRR Calculator

Common questions

Which inputs matter most for money weighted return example?

The key inputs are Equal-period cashflows (comma or newline separated). Match their units and periods before using IRR Calculator.

How can I check an answer for money weighted return example?

Reproduce the worked example with its stated inputs first, then change equal-period cashflows (comma or newline separated) by a known amount and confirm the output moves the way the relationship predicts. Only then substitute your own values.

When should I recalculate money weighted return example?

Re-run it when the real-world inputs move — new measurements, changed rates or thresholds, or a different unit convention on the same quantity.