TWR measures portfolio performance by eliminating the effect of cash flows (deposits and withdrawals). It's the standard for comparing fund manager performance since it isolates investment decisions from investor behaviour.
TWR = [(1+R1) × (1+R2) × ... × (1+Rn)] - 1 where Ri = return between cash flows
If your portfolio returns 5% in Q1, then you deposit more money, and returns 3% in Q2: TWR = (1.05)(1.03) - 1 = 8.15%, regardless of the deposit amount.
AllInvestView calculates both TWR and IRR on your dashboard. Read our portfolio returns guide to understand which to use.