PIP Formula

[blueroadster]

Can anyone tell me the formula that the TSP website uses to calculate one's end of month PIP?

 

[RealMoneyIssues]

I'm guessing:

Value of your TSP now(EOM) - Value of your TSP a year ago(EOM)
Value of your TSP a year ago(EOM)

EOM = End of the Month

 

[blueroadster]

Nope...It is some form of a division based formula. I've already calculated my overall percent return/CAGR, contribution percent return/CAGR, etc. on a yearly and running basis. The formulas to calculate all of these results are correct however none of them for example at the end of 2012 match my PIP reported on the TSP website at the end of 2012.

 

[RealMoneyIssues]

Well, you can try putting your month end values for your TSP and use this:

NewValue = (100*(1+PreviousValue)*(1+CurrentValue)-100)/100

I stole that from the TSPTalk spreadsheet from here:
TSP Calculator - Thrift Savings Plan

I use a very customized version of the TSP Returns Calculator, but the cell formulas are the same.

Maybe this is what you are looking for?

 

[Frixxxx]

Is the Modified Dietz method used to calculate your PIP over a time frame and not to provide an ANNUALISATION which is a calculation of an annual rate of return.

Wikipedia (Not my normal choice of research) provides a straight forward excel VBA function to use in your spreadsheets.

Hope this helps.

 

[RealMoneyIssues]

Is the Modified Dietz method used to calculate your PIP over a time frame and not to provide an ANNUALISATION which is a calculation of an annual rate of return.

Wikipedia (Not my normal choice of research) provides a straight forward excel VBA function to use in your spreadsheets.

Hope this helps.

Wow, my brain hurts...

 

[Frixxxx]

Wow, my brain hurts...

Actually, this is pretty straight forward in the math category.

Here's a little bit of an explanation where you can see it in action:
LINK

 

[blueroadster]

Is the Modified Dietz method used to calculate your PIP over a time frame and not to provide an ANNUALISATION which is a calculation of an annual rate of return.

Wikipedia (Not my normal choice of research) provides a straight forward excel VBA function to use in your spreadsheets.

Hope this helps.

Just what I was looking for...Thanks!