MWRR (also called IRR - Internal Rate of Return) is a compound growth rate. That’s it.
If your MWRR is 15%, your money is growing at 15% per year. This is likely the most important information you need about your investments.
MWRR answers the question: “At what rate is my money actually growing?”
Unlike simple percentage gains, MWRR factors in when you added or withdrew funds. If you invested more right before a market dip, your MWRR will reflect that unfortunate timing. If you added funds before a rally, you’ll see the benefit.
This makes MWRR personal to you - two investors with the same asset but different contribution patterns will have different MWRR values.
For each individual asset in NetFiscus, you can see its MWRR derived from your value updates and cash flows. On your dashboard, you can see the MWRR for your entire portfolio.
This gives you a clear picture of how your wealth is actually growing - accounting for all the deposits, withdrawals, dividends, and value changes along the way.
You invest $100 in the stock market. It grows by 10% in one year to $110. Your MWRR is 10%.
But what if halfway through the year you deposited an additional $50? Did you add that money when the market was low (good timing) or high (bad timing)? Your MWRR captures this - it might be higher or lower than 10% depending on your timing.
The TWR (Time-Weighted Return) would still show 10% because it measures the investment’s performance, not yours.
MWRR is particularly useful when:
NetFiscus uses the XIRR (Extended Internal Rate of Return) algorithm to calculate MWRR. This considers:
The result is an annualized percentage representing your personal compound growth rate.
While MWRR measures YOUR growth rate (including timing decisions), TWR (Time-Weighted Return) measures the ASSET’s performance (independent of your cash flows).
| Aspect | MWRR | TWR |
|---|---|---|
| Measures | Your compound growth rate | Asset’s pure performance |
| Affected by timing | Yes | No |
| Answers | “How fast is my money growing?” | “How did this investment perform?” |
NetFiscus focuses on MWRR because it answers the question most investors actually care about: “How fast is my money growing?” While TWR is useful for comparing fund managers or benchmarking investments, MWRR reflects your real wealth-building progress.
NetFiscus needs at least two data points on different dates to calculate MWRR. The more history you have, the more meaningful the calculation becomes.
If you see a blank MWRR value, add more historical data or record additional value updates and cash flows.
