📈 Portfolio Return Calculator

Calculate weighted average portfolio return from individual holdings and their weights.

Enter each holding's weight and annual return. Weights should sum to 100%.

Asset / Holding 1

Weight (%)

Annual Return (%)

Asset / Holding 2

Weight (%)

Annual Return (%)

Asset / Holding 3

Weight (%)

Annual Return (%)

Asset / Holding 4

Weight (%)

Annual Return (%)

Calculating Weighted Portfolio Return

Weighted Portfolio Return = Sum of (Asset Weight × Asset Return). A 60/20/15/5 portfolio (stocks/international/bonds/cash) with returns of 10.5%, 7.2%, 4.0%, 4.8% produces a weighted return of 8.56%. Asset allocation is the primary driver of long-term returns — studies show it accounts for over 90% of portfolio return variability.

People Also Ask

What is a good portfolio return?

The S&P 500 has returned ~10% annually since 1926. A diversified 60/40 portfolio (60% stocks, 40% bonds) has historically returned ~7–8%. Inflation runs ~2–3%, so a real return of 5–7% above inflation is considered strong for a balanced portfolio. Always compare risk-adjusted returns, not just raw returns.

How often should I rebalance my portfolio?

Annual rebalancing is sufficient for most investors. When any asset class drifts more than 5% from target allocation, rebalance. More frequent rebalancing increases transaction costs and potential tax drag without meaningfully improving outcomes. Tax-advantaged accounts (401k, IRA) are the best place to rebalance — no capital gains implications.

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