Quick answer
Portfolio return = Σ weight × return ÷ Σ weight. Weights of 60, 30 and 10 with returns of 8%, 4% and 1% give (480 + 120 + 10) ÷ 100 = 6.1%.
Enter the weights (amounts or percentages) and the return of each asset. The calculator returns the weighted return.
Related tools: Average Return Calculator: Arithmetic and geometric average of periodic returns. Cash on Cash Return Calculator: Annual pre-tax cash flow relative to the cash you invested. Investment Calculator: Project investment growth from a rate of return you choose.
How to use the Portfolio Return Calculator
- Type weights (amounts or %), for example 60, 30, 10.
- Type return of each asset (%), for example 8, 4, 1.
- Press Calculate to see the result, and use Reset to start again.
| Input | What to enter | Allowed values |
|---|---|---|
| Weights (amounts or %) | Text, such as 60, 30, 10 | — |
| Return of each asset (%) | Text, such as 8, 4, 1 | — |
Formula and method
Formula
portfolio return = Σ wᵢrᵢ ÷ Σ wᵢ
IEEE-754 double precision; money shown to cents, rates to 4 decimals. Results are estimates, not financial advice.
Weights are normalized, so amounts or percentages both work.
Worked examples
These examples are verified: each one is an automated test case that the live calculator must reproduce exactly.
Example 1
Inputs: Weights (amounts or %) = 60, 30, 10; Return of each asset (%) = 8, 4, 1.
| Result | Value |
|---|---|
| Portfolio return | 6.1% |
Example 2
Inputs: Weights (amounts or %) = 50, 50; Return of each asset (%) = 12, -4.
| Result | Value |
|---|---|
| Portfolio return | 4% |
The first line is the headline result (portfolio return). IEEE-754 double precision; money shown to cents, rates to 4 decimals. Results are estimates, not financial advice.
Weights can be amounts
Use dollars or percentages; they are normalised. $60,000, $30,000 and $10,000 give the same 6.1%. Both lists must be in the same order and length.
Single period
This is a one-period weighted average. Over several years, weights drift as returns differ, so rebalancing assumptions matter. Risk is not captured: two portfolios with the same return can differ greatly in volatility.
What happens with invalid input
These messages are produced by the calculator itself, so you know what to fix.
- Return of each asset (%): entering "5" shows "Enter one return for every weight." beside that field and no result.
- Weights (amounts or %): entering "0, 0" shows "The weights must add up to more than zero." beside that field and no result.
Choosing between the Portfolio Return Calculator and similar calculators
Each row shows what a related calculator on this site asks for and what it returns, so you can pick the one that matches your question.
| Calculator | You enter | It returns |
|---|---|---|
| [Average Return Calculator](/finance/average-return-calculator/) | returns per period | Geometric average return |
| [Cash on Cash Return Calculator](/real-estate/cash-on-cash-return-calculator/) | annual pre-tax cash flow and total cash invested | Cash-on-cash return |
| [Investment Calculator](/finance/investment-calculator/) | initial amount, annual interest rate and years | Projected value |
| [Financial Calculator](/finance/financial-calculator/) | solve for, periods per year and payments | Future value (FV) |
| [IRR Calculator](/finance/irr-calculator/) | initial investment and cash flows | IRR |
Background: interest, saving and investing
A nominal rate (APR) does not include the effect of compounding; the annual percentage yield (APY) does: APY = (1 + r/n)^n − 1. A 5% nominal rate compounded annually is 5.000%, semi-annually about 5.063%, quarterly about 5.095% and monthly about 5.116%, so more frequent compounding helps, but with diminishing returns.
The rate you enter in a projection is an assumption, not a promise: real returns vary and can be negative. Fees and taxes are not modelled unless the page says so.
Assumptions and limitations
- Lists must be the same length
Results are estimates for planning, not financial advice. Lender terms, fees, taxes and rounding rules can change real figures, so confirm important numbers with your lender or a licensed adviser.
If a required value is empty, not a number, or outside its allowed range, the form marks that field with a message and shows no result instead of a misleading number. The automated checks deliberately try invalid entries for return of each asset (%) and weights (amounts or %) to confirm this.
Frequently asked questions
Is it the same as CAGR?
No, it averages the assets' returns in one period.
Can returns be negative?
Yes. A negative return for an asset lowers the weighted result, and it is entered as a negative percentage.
What if weights don't sum to 100?
They are normalised.
What does the Portfolio Return Calculator calculate?
Weighted return of a portfolio from asset weights and returns. It returns Portfolio return.
What formula does the Portfolio Return Calculator use?
portfolio return = Σ wᵢrᵢ ÷ Σ wᵢ. Weights are normalized, so amounts or percentages both work.
What do I need to enter in the portfolio Return Calculator?
You enter Weights (amounts or %) and Return of each asset (%).
How is the result rounded or limited?
IEEE-754 double precision; money shown to cents, rates to 4 decimals. Results are estimates, not financial advice. Lists must be the same length.
What is an example of a portfolio Return result?
With weights (amounts or %) 60, 30, 10 and return of each asset (%) 8, 4, 1, the portfolio return is 6.1%.
Can I rely on this calculator for a decision?
Results are estimates for planning, not financial advice. Lender terms, fees, taxes and rounding rules can change real figures, so confirm important numbers with your lender or a licensed adviser. For this calculator in particular: Lists must be the same length.
Related calculators
- Average Return Calculator — Arithmetic and geometric average of periodic returns.
- Cash on Cash Return Calculator — Annual pre-tax cash flow relative to the cash you invested.
- Investment Calculator — Project investment growth from a rate of return you choose.
- Financial Calculator — Time-value-of-money solver for N, rate, present value, payment or future value.
- IRR Calculator — Internal rate of return of an investment from its yearly cash flows.
- CAGR Calculator — Compound annual growth rate between two values.
Sources
- Standard time-value-of-money relations (e.g. Brealey, Myers & Allen, Principles of Corporate Finance)
Content last reviewed 2026-11-04. Formulas and worked examples are checked by automated tests against independently computed values.