Calculator

Weighted Average Return

Your portfolio return is not the average of your holdings’ returns. It is weighted by how much money sits in each one. A small holding doing brilliantly barely moves the total, which is why the plain average people quote is almost always flattering.

₹8,00,000
7%
₹2,00,000
18%

Your actual portfolio return

Your actual portfolio return:9.2%

The plain average people quote
12.5%
Total invested
₹10,00,000

What this assumes

Every calculator here states what it took for granted. A result whose assumptions are hidden is not worth much.

  • Returns are annual and for the same period.
  • Amounts are current values, not what you originally paid.

How to use it

  1. Enter how much sits in each of two holdings and what each returned.
  2. Compare the weighted figure against the plain average.

Illustrative only. Not a projection, not a guarantee, and not investment advice.

Common questions

Why is my portfolio return lower than my best fund?

Because your best fund probably holds a small share of your money. The total is dragged towards whatever your largest holdings did, which is usually the least exciting part of the portfolio.

I have more than two holdings.

The arithmetic is the same, extended. Bring a statement to a financial assessment and we will run it across everything you hold rather than two lines at a time.

A number is not a plan.

If this result raised a question, that is the useful part. Bring it in and we will work through what it means for your situation.