How do you calculate portfolio return?

Multiply each asset's return by its weight (its value ÷ total portfolio value) and add the results.

Do the weights have to add up to 100%?

Yes. The calculator converts amounts into weights automatically so they always do.

Is portfolio risk also a weighted average?

No. Portfolio variance depends on the correlations between assets, which is why diversification reduces risk.

Can I use this for realized returns?

Yes, with actual returns for the period and the weights at the start of the period.

Portfolio Expected Return Formula

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Portfolio Expected Return Calculator

The expected return of a portfolio is the weighted average of the expected returns of the assets in it, each weighted by its share of the portfolio’s value: R_p = w₁R₁ + w₂R₂ + … + w_nR_n. The same formula gives a portfolio’s realized return over a period if you use actual returns and the weights at the start of the period.

Formula

R_p = w₁R₁ + w₂R₂ + ⋯ + w_nR_n w_i = amount in asset itotal portfolio value

Where

R_p: expected (or realized) portfolio return
w_i: weight of asset i; the weights add up to 1
R_i: expected return of asset i

Calculator

Amount (or weight) in each asset

Amounts or percentages; they are converted to weights.

Expected return of each asset (%)

Separate values with commas, spaces or new lines.

Result and step-by-step solution

Portfolio return

9.8%

On 100,000.00 this is about 9,800.00 a year.

Weights and contributions
Asset Amount Weight Return Weight × return
1 50,000.00 50% 10% 5%
2 30,000.00 30% 6% 1.8%
3 20,000.00 20% 15% 3%
Add the contributions
R_p = 0.5 × 10% + 0.3 × 6% + 0.2 × 15% = 9.8%

Asset	Amount	Weight	Return	Weight × return
1	50,000.00	50%	10%	5%
2	30,000.00	30%	6%	1.8%
3	20,000.00	20%	15%	3%

How to use the formula

You can enter the amount invested in each asset or the weights directly; the calculator divides by the total so the weights always sum to 100%. The table shows each asset’s weight and its contribution to the total, which makes it easy to see which holdings drive the result.

With 50,000 in an asset expected to return 10%, 30,000 at 6% and 20,000 at 15%, the portfolio’s expected return is 9.8%, about 9,800 a year on 100,000. Unlike return, portfolio risk is not a simple weighted average: diversification lowers volatility whenever assets are less than perfectly correlated. To judge the return against that risk, see the Sharpe ratio; to estimate each asset’s expected return, the CAPM.

Frequently asked questions

How do you calculate portfolio return?: Multiply each asset’s return by its weight (its value ÷ total portfolio value) and add the results.
Do the weights have to add up to 100%?: Yes. The calculator converts amounts into weights automatically so they always do.
Is portfolio risk also a weighted average?: No. Portfolio variance depends on the correlations between assets, which is why diversification reduces risk.
Can I use this for realized returns?: Yes, with actual returns for the period and the weights at the start of the period.

Last reviewed: September 26, 2026. Calculations run in your browser and were checked against numpy-financial, SciPy and published spreadsheet examples.