WhatIf Calc glossary

Learn the ideas behind the calculation.

Start with plain-English explanations, then move into the details that can change a historical what-if result.

11 articles Last updated Jun 21, 2026, 12:00 AM UTC Also available in the app

All lessons

Every glossary article, organized for reading.

Each article begins at a beginner level and builds toward the practical details that matter when comparing investments.

CAGR

CAGR turns a messy historical path into one smoothed yearly growth rate, which makes long periods easier to compare.

DCA

DCA spreads purchases over time. It can make investing behavior steadier, but it does not remove market risk.

Adjusted close

Adjusted close is often better for historical return calculations because it tries to make old prices comparable with later prices.

Dividend

Dividends are part of investment return, but they are not free money and they are not guaranteed.

Drawdown

Drawdown helps explain how painful the path was, not just where the investment ended.

Volatility

Volatility describes the size and speed of price swings. It is not the same as permanent loss, but it can affect behavior and risk.

ETF

An ETF pools investor money into a portfolio of assets and trades throughout the day on an exchange.

Inflation

Inflation matters because a portfolio can grow in dollars while still losing purchasing power.

Currency risk

Currency risk appears when an investment or its holdings are tied to a currency different from the one you spend or measure wealth in.

Expense ratio

Expense ratios reduce fund returns over time, and small percentage differences can compound into meaningful amounts.

Leverage

Leverage can magnify gains, but it also magnifies losses and can make timing much more dangerous.