Investment growth vs. contributions: what changed?
If your portfolio rises by $15,000 after you deposit $12,000, the entire increase is not an investment gain. Separate money you added from changes in the value of the money already invested.
Start with a dollar reconciliation
For a simple account-level reconciliation, take ending value minus starting value, then subtract external deposits and add external withdrawals. The remainder is the change not explained by those cash flows. It can include market moves, retained income, fees, taxes, and currency effects.
This remainder is useful for understanding dollars, but it is not a complete performance calculation. A deposit early in the period has more time to earn a return than one made on the final day. Dividing the remainder by the starting balance ignores that timing.
Treat transfers consistently across accounts
Moving $10,000 from one of your brokerages to another is a withdrawal and deposit at the account level. Across the combined portfolio, it is an internal transfer. Counting the receiving deposit as new household savings overstates the money you added.
The same distinction applies to debt repayment. Using existing cash to reduce a loan moves value between parts of your balance sheet. Interest remains a cost; principal repayment is separate. Use the same dates, currency, and account scope when comparing changes.
Keep expected growth separate from recorded performance
NetCarry’s annual net growth calculation applies your assumed rates to today’s assets and liabilities. It estimates growth less debt interest before contributions and payments. It does not claim to reconstruct the cash-flow-adjusted return your brokerages actually earned.
In a forecast, contributions and payments are separate inputs alongside growth rates. That lets you explore whether a projected increase comes from adding more money, changing assumptions, or reducing borrowing costs. Historical snapshots show observed balances; modeled history and upstream estimates are labeled separately in the app.
A $15,000 increase is not necessarily a $15,000 gain
| Item | Amount |
|---|---|
| Starting portfolio value | $100,000 |
| External deposits | +$12,000 |
| Ending portfolio value | $115,000 |
| Total balance increase | $15,000 |
| Change not explained by deposits | $3,000 |
The $3,000 remainder does not establish a 3% investment return: deposit timing and other account activity still matter.
Common questions
Are reinvested dividends contributions?
They are income generated inside the portfolio, rather than new money you supplied from outside it. Treat them consistently with your account’s balance and cash-flow records so they are not counted twice.
Does NetCarry calculate money-weighted returns?
No. The app’s annual net growth metric uses assumed growth rates and debt interest. It is not historical IRR or money-weighted performance reporting.
Why separate savings from growth in a forecast?
It makes assumptions easier to interpret. A larger ending balance can come from larger contributions even when the assumed investment return is unchanged. NetCarry models end-of-month contributions and payments separately from growth.
Sources & methodology
Examples are illustrative. Product descriptions reflect NetCarry’s current calculations and account features.