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Metrics & Definitions

Net Asset Value (NAV): Your Portfolio's True Worth

2 min read
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Learn what NAV means, how it's calculated, and why it's the key metric for tracking portfolio performance.

Net Asset Value (NAV)

NAV represents the total value of your portfolio—what it would be worth if you liquidated everything today.

The Formula

NAV = Market Value of All Holdings + Cash Balance

What's Included

  • Holdings Value: Current market value of all stocks (shares × current price)
  • Cash Balance: Uninvested cash, including received dividends

Why NAV Matters

NAV is the single best measure of portfolio size and performance over time. Comparing today's NAV to your starting capital shows your total return.

NAV vs Initial Capital

If you started with $100,000 and NAV is now $115,000:

  • You've gained $15,000 total
  • That's a 15% return on capital

Daily Tracking

We calculate NAV daily to track portfolio performance over time. This creates the performance chart you see on the portfolio page.

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