How Is Your Profit/Loss (P/L) Calculated in the App?
Why Doesn't Your Own Calculation Match the P/L Shown in the App?
The app uses Time-Weighted Return (TWR)—the global standard used by funds and financial institutions to measure investment performance. It differs from the simple "Profit ÷ Capital Invested" formula you might be used to, so a difference in the final numbers is completely normal and does not indicate a system error.
The Two Core Formulas
① Daily P/L — Calculating single-day performance
Daily P/L (T) = Daily Profit (T) / (Start-of-Day Total Assets (T) + Net Asset Inflow (T))
Why add "Net Asset Inflow" to the denominator?
Adding new cash inflows (e.g., deposits or incoming transfers) to the denominator ensures that new money added today does not distort the performance of assets held before today. This is the fundamental difference between TWR and standard manual calculations.
② Cumulative P/L (TWR) — Compounding daily P/L over time
Time-Weighted Return (TWR)= (1 + R₁) × (1 + R₂) × … × (1 + Rₙ) − 1
(Where Rₙ represents the Daily P/L calculated in formula ① for day n.)
In short: First add 1 to each Daily P/L to convert it into a growth factor, multiply them sequentially to compound your returns, and finally subtract 1 to convert the total product back into your total P/L—that is the essence of the TWR formula.
How Formula ② Works in 3 Simple Steps
1. Convert P/L to growth factors: A +5% gain becomes a multiplier of 1.05; a -5% loss becomes 0.95. Daily P/L cannot be directly multiplied, but growth factors can.
2. Chain the multipliers: The ending value of one period becomes the starting base for the next. Multiplying these factors sequentially accounts for compounding.
3. Subtract the initial principal: The total product includes your base principal (1). Subtracting 1 isolates your net P/L (a result of 0 means break-even).
Calculations Across Different Timeframes
The underlying formula remains identical across monthly, yearly, and all-time views—only the calculation period changes:
| Timeframe | Calculation Method | Example | Cumulative P/L (using formula ②) |
| Monthly | Compounds the daily P/L for each trading day in the current month. | 5 trading days in the month: R₁ = +1%, R₂ = -0.5%, R₃ = +2%, R₄ = +0.3%, R₅ = -1% | (1+1%)×(1-0.5%)×(1+2%)×(1+0.3%)×(1-1%)−1 = 1.01×0.995×1.02×1.003×0.99−1 ≈ +1.8% |
| Yearly | Compounds the monthly P/L for each month in the current year. | Months 1-3 (Jan–Mar) of the year: M₁ = +2%, M₂ = -1%, M₃ = +3% | (1+2%)×(1-1%)×(1+3%)−1 = 1.02×0.99×1.03−1 ≈ +4.0% (Same calculation for all 12 months) |
| All-Time | Compounds the monthly P/L from your first trading month to the current month. | 5 months since account opening: M₁ = +2%, M₂ = -1%, M₃ = +3%, M₄ = +2%, M₅ = -1% | (1+2%)×(1-1%)(1+3%)×(1+2%)×(1-1%)−1 = 1.02×0.99×1.03×1.02×0.99−1 ≈ +5.0% |
Gift Stocks are Also Included in Your P/L
Even if you didn't place any trades this month, any platform-gifted stocks held in your account will still contribute to your daily P/L analysis based on their price fluctuations. P/L tracks the performance of your entire portfolio, not just assets you actively bought or sold.
Why Can't You Just Add the Percentages Together?
Simple addition ignores compounding.
For example, if your monthly P/L% over 5 months are +3%, +5%, -2%, +4%, and +2%:
Simple Addition: 3% + 5% - 2% + 4% + 2% = +12.0%
Compounded TWR Formula: (1 + 3%) × (1 + 5%) × (1 - 2%) × (1 + 4%) × (1 + 2%) - 1 = 1.03 × 1.05 × 0.98 × 1.04 × 1.02 - 1 ≈ +12.4%
The extra 0.4% comes from compounding—your earnings earning returns over time. The longer the timeframe, the greater this difference becomes, which is why the app's calculation reflects your true investment performance.