How it works
Portfolio return weights each asset’s return by the share of capital allocated to it. A small holding with a high return can contribute less than a larger holding with a modest return.
The formula
Keep currency, units and time periods consistent. Percentage inputs use percentage points (enter 5 for 5%). Results are rounded only for display; tiny nonzero values may use scientific notation. Undefined ratios are shown as unavailable.
50% at 8%, 30% at 4% and 20% at −2% contribute +4.0, +1.2 and −0.4 percentage points, producing a 4.80% weighted portfolio return.
Calculation method
In weights mode the entered allocations must total 100%; the calculator does not silently normalize them. Beginning-values mode derives weights from the asset values and estimates an ending value using the entered returns.
Interpretation
The ending-values and cash-flow view adds withdrawals back and subtracts new contributions to calculate gain. It divides total gain by total invested capital. Because flow dates are unknown, this is a simple capital-based return, not time-weighted performance or an internal rate of return.
Limitations
Use returns over the same measurement period for every holding. The best and worst contributors are ranked by their portfolio contribution, not by standalone return. Changing a row explores a scenario; the tool does not recommend allocations or rebalancing trades.
Method and reference sources
Method and content checked 2026-09-20. These sources provide background, not endorsement or professional certification. The formula and limitations above define this calculator.
- Investor.gov — Compound Interest CalculatorGrowth, contribution and time-horizon context; this site does not forecast investment returns.
- Investor.gov — Understanding FeesInvestment fee and compounding context; enter the terms of your fund or account.
Frequently asked questions
When is a weighted average of returns appropriate?
Use comparable-period returns and weights representing the relevant beginning exposure. Contributions, withdrawals and rebalancing can require more detailed performance measurement.
What is a worked example for Portfolio Return?
50% at 8%, 30% at 4% and 20% at −2% contribute +4.0, +1.2 and −0.4 percentage points, producing a 4.80% weighted portfolio return.