A return is the amount of money earned or lost on an investment. For example, if you start the year by investing $100, which then grows to $110 by the end of the year, you have made a 10% return on your investment.
What is my account summary return?
On Sarwa Trade we calculate your simple return on an account level. Simple returns are earnings in your portfolio divided by net deposits.
- Simple Return = Earnings ÷ Net Deposits
- Net Deposits = Deposits – Withdrawals
Note: In a case where you have earned positive return and then withdrawn funds, your simple return will be impacted.
For Example: If you have deposited $100 into your account and made $10 in returns (i.e., you total account balance is of 110$) your simple return will be of 10%. Here is why:
- Net Deposits = $100
- Earnings = Account Balance - Net Deposits = $110 - $100 = 10$
- Simple Return = Earnings ÷ Net Deposits= 10 ÷ 100 = 10%
Now assume you have withdrawn $30 from your account, brining your account value to $80. Your simple return is now ~14.3%. Here is why:
- Net Deposits = Deposits - Withdrawals = $100 - $30 = $70
- Earnings = Account Balance - Net Deposits = $80 - $70 = $10
- Simple Return = Earnings ÷ Net Deposits = 10/70 = ~14.3%