Portfolio return: Combining Asset Returns into a Portfolio Result
A weighted portfolio return combines the contribution from each asset over a common period. The weights describe how much of the modeled portfolio was allocated to each holding.
Use the Portfolio return Calculator to enter your own figures and compare the result with the worked example below.
Portfolio return formula
Return = Σ(weight_i×asset return_i)
Worked example
| Item | Example value |
|---|---|
| Portfolio weights (%) | 60,40 |
| Asset returns (%) | 8,3 |
| Portfolio return | 6% |
These are illustrative inputs, not current prices, rates or recommended targets. Where a currency is shown, keep all comparable money amounts in the same currency; conversion examples identify the two sides separately.
How to interpret the result
Changing weights, deposits and withdrawals complicate realized performance. Use consistent beginning weights for a simple single-period comparison.
Related calculations
Method and further reading
The example follows the FinMathly calculator method. For broader background, see Investor.gov: Introduction to investing. The background resource may use jurisdiction-specific terms; it does not replace the assumptions of this calculator.
Featured photograph: Pexels.