How do i calculate gain in my portfolio?

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JEDI

Lifer
Sep 25, 2001
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Lets say i have $500k in my portfolio at the beginning of the year.
I usually calc my gain by (End of year $ - beginning of year $)/Beginning of year $

so if end of year my portfolio has $600k in it, then the gain is 20%.

but what if in Nov i add $200k more to my portfolio and it only appreciated $1k by end of year?

So the amount of $ i put in is now $700k, and at end of year the value is $801k. using my simple formula, the gain is 14.4%. But that looks wrong. The gain % should be higher?

How do i take into account the $200k i added in Nov, and it's $1k gain?
What's the formula?
 
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