Why do the profit and return in % not match?

findependent calculates the return in the app as a time-weighted return (TWR). Although this type of calculation is considered standard in the financial sector, it can give you the feeling that return and profit do not match.

The reason for this is that all incoming and outgoing payments are ignored when calculating the TWR. This means that the return corresponds to the return that would have been achieved if the same amount had always been invested from the outset. This allows different investment solutions and strategies to be compared fairly.

The major disadvantage of this method of calculation is that the return does not correspond to the intuition (profit or loss divided by the total value of the investment solution) as soon as you have made more than just a single payment into your investment solution.

This is why findependent also shows the money-weighted return (MWR) in the PDF report. This takes into account the personal payment dates, which means that the return often corresponds well with the actual profit or loss and is therefore easier to understand.