Portfolio & Risk

Portfolio Return

Weighted return across all holdings

What is Portfolio Return?

Portfolio return is the weighted average return of all holdings in a portfolio, where each holding's contribution is proportional to its weight. It is the starting point for any performance attribution analysis. Time-weighted return (TWR) is the standard for evaluating manager skill as it eliminates the distorting effect of cash flows. Money-weighted return (MWR or IRR) reflects the investor's actual experience including the timing of contributions and withdrawals. This calculator computes the simple weighted return for a snapshot portfolio: enter each holding's weight and return for the period to get the blended portfolio return.

Formula

Portfolio Return = Σ (Weight_i × Return_i)

Σ Weight_i must equal 100%

Calculator

How to Use

1
List all holdings: Enter each position as a percentage of total portfolio value (weights must sum to 100%).
2
Enter each return: The return for each holding over the measurement period.
3
Multiply and sum: Weight × Return for each holding, then sum all products.
4
Add more holdings: Use the "Add position" button to add up to 20 holdings.

Worked Example

Example: Three-stock portfolio

Stock A (60%)

+15%

Stock B (30%)

+5%

Cash (10%)

+4%

Portfolio return = (0.60 × 15%) + (0.30 × 5%) + (0.10 × 4%) = 9.0% + 1.5% + 0.4% = 10.9%. Even though Stock A returned 15%, its weight of 60% brings the blended return to 10.9%.