In the app, findependent calculates the return as a time-weighted return (TWR). While this calculation method is the standard in the financial industry, it can sometimes feel like the return and the profit don't align. 

The reason is that the TWR calculation ignores all deposits and withdrawals. This means the return shown is the return that would have been achieved if the same amount of money had been invested from the very beginning. This allows for a fair comparison between different investment solutions and strategies. 

The main disadvantage of this method is that the return percentage doesn't match your intuition (profit or loss divided by the total value of the investment) as soon as you've made more than one deposit. 

That's why findependent also displays the money-weighted return (MWR) in your overview. This metric takes your personal deposit and withdrawal timings into account, which often results in a return figure that aligns well with your actual profit or loss, making it easier to understand.

You can find more information on returns and how to compare returns in our blog article.