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How does Hatch calculate my portfolio returns?
How does Hatch calculate my portfolio returns?

There are multiple ways to show your investment returns, we've picked two.

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Written by Support
Updated over a week ago

Total Return

This is the total amount of money you have made (or lost) through Hatch. It takes into account every deposit, withdrawal, fee, dividend, US tax payment and all returns you've made from your shares (both realised and unrealised). 

How we calculate your total return:

Current portfolio value - (Total deposits + dividends + returns - fees - US tax - withdrawals) = total return

Return on Your Current Investments

These returns are based purely on share prices (i.e they don’t include dividends and US tax). They show you how much the shares you currently own have increased or decreased in value compared to the average price you paid for those shares. 

When you sell shares, we deduct the buy price of those shares from the total cost of your holding, using the FIFO method (see below). This means the average cost for your current holding will change when you sell shares, and so will the return.

There are multiple ways to calculate the average cost of your shares and we use the ‘First in, First Out’, or ‘FIFO’ method. This method assumes that your oldest shares are sold first. The average cost for each holding may change after you sell shares because it’s recalculated to exclude the purchase price of the shares you sold, on a FIFO basis.

You’ll need to look at your Completed Transactions to calculate whether you’ve made an overall profit or loss from buying and selling shares over time.  This is important if you’re deciding whether or not it’s a good time to sell – this table won’t tell you that.

How we calculate return on your current investments:

Current value - total cost (using the First In, First Out method for sales) = Return

Note when you're looking at total returns in NZD: Hatch uses the current exchange rate to show your total return in NZD, which means it doesn't include any gains or losses you've made from currency fluctuations.

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