# Daily Return

Daily Return = ((Today's Acct. Balance - Today's Deposit) / Yesterday's Acct. Balance) - 1

*Example:* If my balance yesterday was $10,000 and my balance today is $12,500, but my $2,000 deposit was reflected in the balance today... the Daily Return would be ((12,500 - 2000) / 10,000) - 1 = **5%**. Without adjusting for the deposit, it would instead appear is if the return was 25%!

This smoothing calculation is what makes [Cumulative Return](https://docs.wingmantracker.com/wingman-concepts/all-metrics-and-terms/cumulative-return) possible and accurate.