Tracking a stock portfolio #2
This is follow up post to: Tracking a stock portfolio in excel (auto update)
In this post we are going to calculate cost basis and returns. The calculations are simplified, commissions, stock splits and dividends are removed from calculations.
In the first post we created dynamic ranges.
We also identified accumulated stocks and the number of shares. I have now added cost basis and returns.
Excel formula in cell C2:
Copy cell C2 and paste down as far as needed.
How this formula works in cell C2
Step 1 - Calculate total cost you paid
=IF(A2<>"", (SUMPRODUCT((A2=Symbol)*(Type="Buy")*Shares*Price)-SUMPRODUCT((A2=Symbol)*(Type="Sell")*Shares*Price))/(SUMPRODUCT((A2=Symbol)*(Type="Buy")*Shares)-SUMPRODUCT((A2=Symbol)*(Type="Sell")*Shares)), "")
SUMPRODUCT(array1, array2, )
Returns the sum of the products of the corresponding ranges or arrays
SUMPRODUCT((A2=Symbol)*(Type="Buy")*Shares*Price)
becomes
SUMPRODUCT((F={F, MSFT, MSFT, F, GOOG, MSFT, GOOG, GOOG, GOOG}))*({Buy, Buy, Buy, Buy, Sell, Sell, Buy, Buy, Sell}=Buy)*{100, 100, 50, 100, 25, 50, 10, 100, 200}*{12, 25, 28, 16, 550, 24, 500, 500, 550})
becomes
SUMPRODUCT(({TRUE, FALSE, FALSE, TRUE, FALSE, FALSE, FALSE, FALSE, FALSE}))*({TRUE, TRUE, TRUE, TRUE, FALSE, FALSE, TRUE, TRUE, FALSE})*{100, 100, 50, 100, 25, 50, 10, 100, 200}*{12, 25, 28, 16, 550, 24, 500, 500, 550})
becomes
SUMPRODUCT({1200, 0, 0, 1600, 0, 0, 0, 0, 0}) returns 2800.
Step 2 - Calculate total amount you sold
=IF(A2<>"", (SUMPRODUCT((A2=Symbol)*(Type="Buy")*Shares*Price)-SUMPRODUCT((A2=Symbol)*(Type="Sell")*Shares*Price))/(SUMPRODUCT((A2=Symbol)*(Type="Buy")*Shares)-SUMPRODUCT((A2=Symbol)*(Type="Sell")*Shares)), "")
SUMPRODUCT((A2=Symbol)*(Type="Sell")*Shares*Price)
becomes
SUMPRODUCT({0, 0, 0, 0, 0, 0, 0, 0, 0}) returns 0.
Step 3 - Calculate accumulated shares
=IF(A2<>"", (SUMPRODUCT((A2=Symbol)*(Type="Buy")*Shares*Price)-SUMPRODUCT((A2=Symbol)*(Type="Sell")*Shares*Price))/(SUMPRODUCT((A2=Symbol)*(Type="Buy")*Shares)-SUMPRODUCT((A2=Symbol)*(Type="Sell")*Shares)), "")
(SUMPRODUCT((A2=Symbol)*(Type="Buy")*Shares)-SUMPRODUCT((A2=Symbol)*(Type="Sell")*Shares
becomes
SUMPRODUCT({100, 0, 0, 100, 0, 0, 0, 0, 0}) - SUMPRODUCT({0, 0, 0, 0, 0, 0, 0, 0, 0})
and returns 200.
Step 4 - Calculate cost basis
=IF(A2<>"", (SUMPRODUCT((A2=Symbol)*(Type="Buy")*Shares*Price)-SUMPRODUCT((A2=Symbol)*(Type="Sell")*Shares*Price))/(SUMPRODUCT((A2=Symbol)*(Type="Buy")*Shares)-SUMPRODUCT((A2=Symbol)*(Type="Sell")*Shares)), "")
becomes
=IF(A2<>"", (2800-0)/200, "") returns 14 in cell C2.
Excel formula in cell D2
Copy cell D2 and paste down as far as needed.
How this formula works in cell D2
Step 1 - Calculate average price you paid per share
=IF(A2<>"", (IFERROR(SUMPRODUCT(--(A2=Symbol), --("Sell"=Type), Price, Shares)/SUMPRODUCT(--(A2=Symbol), --("Sell"=Type), Shares), 0)-IFERROR(SUMPRODUCT(--(A2=Symbol), --("Buy"=Type), Price, Shares)/SUMPRODUCT(--(A2=Symbol), --("Buy"=Type), Shares), 0))*(MIN(SUMPRODUCT(--(A2=Symbol), --("Sell"=Type), Shares), SUMPRODUCT(--(A2=Symbol), --("Buy"=Type), Shares))), "")
(IFERROR(SUMPRODUCT(--(A2=Symbol), --("Sell"=Type), Price, Shares)/SUMPRODUCT(--(A2=Symbol), --("Sell"=Type), Shares), 0)
returns 0.
Step 2 - Calculate average selling price
=IF(A2<>"", (IFERROR(SUMPRODUCT(--(A2=Symbol), --("Sell"=Type), Price, Shares)/SUMPRODUCT(--(A2=Symbol), --("Sell"=Type), Shares), 0)-IFERROR(SUMPRODUCT(--(A2=Symbol), --("Buy"=Type), Price, Shares)/SUMPRODUCT(--(A2=Symbol), --("Buy"=Type), Shares), 0))*(MIN(SUMPRODUCT(--(A2=Symbol), --("Sell"=Type), Shares), SUMPRODUCT(--(A2=Symbol), --("Buy"=Type), Shares))), "")
IFERROR(SUMPRODUCT(--(A2=Symbol), --("Buy"=Type), Price, Shares)/SUMPRODUCT(--(A2=Symbol), --("Buy"=Type), Shares)
returns 14.
Step 3 - Multiply with bought or sold shares
=IF(A2<>"", (IFERROR(SUMPRODUCT(--(A2=Symbol), --("Sell"=Type), Price, Shares)/SUMPRODUCT(--(A2=Symbol), --("Sell"=Type), Shares), 0)-IFERROR(SUMPRODUCT(--(A2=Symbol), --("Buy"=Type), Price, Shares)/SUMPRODUCT(--(A2=Symbol), --("Buy"=Type), Shares), 0))*(MIN(SUMPRODUCT(--(A2=Symbol), --("Sell"=Type), Shares), SUMPRODUCT(--(A2=Symbol), --("Buy"=Type), Shares))), "")
MIN(SUMPRODUCT(--(A2=Symbol), --("Sell"=Type), Shares), SUMPRODUCT(--(A2=Symbol), --("Buy"=Type), Shares))
returns 0.
Step 4 - Calculate returns
=IF(A2<>"", (IFERROR(SUMPRODUCT(--(A2=Symbol), --("Sell"=Type), Price, Shares)/SUMPRODUCT(--(A2=Symbol), --("Sell"=Type), Shares), 0)-IFERROR(SUMPRODUCT(--(A2=Symbol), --("Buy"=Type), Price, Shares)/SUMPRODUCT(--(A2=Symbol), --("Buy"=Type), Shares), 0))*(MIN(SUMPRODUCT(--(A2=Symbol), --("Sell"=Type), Shares), SUMPRODUCT(--(A2=Symbol), --("Buy"=Type), Shares))), "")
becomes
=IF(A2<>"", (0-14)*0) returns 0
Final notes
I am not telling you to sell or buy any stock, this is just an example.
I hope I got all calculations right.
Get excel file
Tracking-a-stock-portfolio2.xlsx
(Excel 2007 -2010 Workbook *.xlsx)
Finance category
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5 Responses to “Tracking a stock portfolio #2”
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We still need to copy cell and paste as far as needed right? Is there a way to avoid that step? That is, if I paste the formula in cell A2, it should automatically update A3 down to how much ever is required.
Ram,
yes, you are right. You need to copy and paste as far as needed.
Is there a way to avoid that step?
No, not without using vba. If you don´t like the errors that show up, use IFERROR function to remove errors.
Why do you use the minimum of the amount of bought and sold shares?
I don't understand why this key figure is relevant...
If it was the same formula without the 'MIN' part, it would tell you something. But how do you for instance read 'returns for stock MSFT are - 100 dollar'... this does not make sense to me.
Thanks for explaining!
Hello, I just stumbled upon your website and am wondering if you might be able to repost part one of this tutorial.
Thanks!
Part one of this tutorial is available again.