What is the period over which the income and expenses are paid based on the stop date and end date?

  1. All cashflows will commence on the start date
  2. We calculate the effective annual rate of the cashflow based on frequencies of the payments, eg any quarterly amount is multiplied by 4 or monthly by 12.
  3. Then we apply the annual rate of cashflow for the period from the start date to the day before the end date, proportioned using complete and partial months.
  4. For example, if you have an annual payment due on 1 Jan each year, if you want to include a full year’s payment you’d need to put an end date of 1 Jan of the following year to apply the cash flow for the entire year. If instead you enter 2 Jan in the same year rather than 1 Jan for the next year, it would only apply one day of the cashflow. 
  5. To add interest or fund growth, all withdrawals and contributions are assumed to happen halfway through the year. The only exception is any withdrawal for the final year of any asset before it fully runs out, when it is assumed to be paid at the start of the year.