About the Portfolio Weighted Return Calculator
This portfolio return calculator combines the returns of up to six holdings into a single weighted average return for the whole portfolio. Enter each holding’s current value and its return — either what it actually earned over a period or what you expect it to earn — and it works out each position’s weight, its contribution to the total, the portfolio’s overall return in percent and dollars, and an optional projection over several years.
Use it to see what a mix of stocks, bonds and cash should earn, to check how much a single fund drives your results, or to compare two allocations before rebalancing. Because each return is weighted by how much money is in it, a big gain on a small position moves the total much less than a modest gain on your largest holding.
The weighted return assumes the values are the amounts invested at the start of the period and that there were no deposits or withdrawals; for periods with cash flows, use a time-weighted or money-weighted (IRR) return instead. The multi-year projection compounds the weighted return yearly and assumes the mix is rebalanced so the weights stay constant.
With the default inputs, the weighted portfolio return is 6.63%. Change any value above to recalculate instantly.
How to use the portfolio weighted return calculator
- 1Name each holding — a fund, stock, asset class or account.
- 2Enter its value at the start of the period.
- 3Enter its return for the period, or the return you expect.
- 4Leave unused holdings at a value of 0.
- 5Read the weighted return, then check the table to see which holdings drive it.
Formula and method
Each holding’s weight wᵢ is its value divided by the total portfolio value. The portfolio return Rp is the sum of every weight multiplied by that holding’s return Rᵢ; each product is the holding’s contribution, in percentage points, to the total. The dollar gain is the total value times Rp, which equals the sum of each holding’s own dollar gain.
The projection compounds Rp for t years. That assumes you rebalance to keep the same weights; without rebalancing, faster-growing holdings take a larger share over time and the realized return drifts. The method treats the values as the money invested at the start of the period with no cash flows in between.
- Vᵢ
- Value of holding i
- wᵢ
- Weight of holding i in the portfolio
- Rᵢ
- Return of holding i (actual or expected)
- Rp
- Weighted portfolio return
- t
- Projection period in years
Worked examples
Four-fund portfolio worth $100,000
Weights are 50% US stocks, 20% international, 25% bonds and 5% cash. The contributions are 0.5 × 8 = 4.0, 0.2 × 7 = 1.4, 0.25 × 4 = 1.0 and 0.05 × 4.5 = 0.225 points, so the portfolio returns 6.625%, or $6,625.
One losing position
The tech fund’s 12% gain on 10% of the money adds 1.2 points, the emerging-markets loss of 5% on 30% subtracts 1.5 points, and the bond fund adds 0.6 × 3 = 1.8 points. The portfolio returns 1.5%, or $1,500 on $100,000.
Projecting the four-fund mix over 10 years
Compounding the 6.625% weighted return for 10 years gives $100,000 × 1.06625¹⁰ ≈ $189,929, assuming the portfolio is rebalanced to the same weights each year.
Frequently asked questions
How do you calculate the weighted return of a portfolio?+
Multiply each holding’s return by its share of the total portfolio value, then add the results. A portfolio that is 60% in a fund returning 10% and 40% in a fund returning 5% has a weighted return of 0.6 × 10 + 0.4 × 5 = 8%.
What is the difference between expected and actual portfolio return?+
Expected return uses forecast returns for each holding, such as long-run averages or capital market assumptions. Actual return uses what each holding really earned over a period. The weighting math is identical; only the inputs differ.
Does this account for deposits and withdrawals?+
No. The weighted return assumes the starting values stayed invested with no cash flows. If you added or withdrew money during the period, use a time-weighted return to judge investment performance or an IRR/XIRR to measure your personal return.
Should I use start or end values for the weights?+
Use the values at the start of the period, because those are the amounts that earned the returns. Using end values overweights the holdings that did best and overstates the portfolio’s return.
Is portfolio risk also a weighted average?+
No. Portfolio return is a simple weighted average, but portfolio volatility is usually lower than the weighted average of each holding’s volatility because assets do not move perfectly together. That diversification benefit requires correlations to calculate.
Results are estimates for educational purposes and are not financial advice. Rates, fees and terms vary — confirm with your lender or a licensed advisor before making decisions.