Portfolio Investment Return Calculator

Weighted Portfolio Return Calculator

Input Fields

Return of Asset 1

R1

%

Expected return of the first asset

Weight of Asset 1

W1

%

Weight of the first asset in the portfolio

Return of Asset 2

R2

%

Expected return of the second asset

Weight of Asset 2

W2

%

Weight of the second asset in the portfolio

Return of Asset 3

R3

%

Expected return of the third asset

Weight of Asset 3

W3

%

Weight of the third asset in the portfolio

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Your Results

Return on Portfolio

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Portfolio Return Calculation Formula

$$\text{Return}_{\text{portfolio}} = \left( \frac{R_1 \times W_1}{100} \right) + \left( \frac{R_2 \times W_2}{100} \right) + \left( \frac{R_3 \times W_3}{100} \right)$$

Where:

• $$R1$$, $$R2$$, $$R_3$$ = returns (%) of individual investments
• $$W1$$, $$W2$$, $$W_3$$ = weights (%) of those investments in the portfolio
• $$Return_{portfolio}$$ = total portfolio return (%)

The portfolio return is calculated as the sum of weighted returns from individual assets. This method helps investors assess the impact of each investment on the portfolio’s overall performance. It’s widely used in asset allocation, portfolio optimization, and financial reporting.

You can extend this formula to more than three assets by applying the same pattern: multiplying each investment’s return by its weight and summing the results.