Portfolio Allocation Tool
Analyze your investment portfolio allocation and diversification score across multiple asset classes.
What this calculator does
The Portfolio Allocation Tool estimates your result instantly from the values you enter, using standard investing & wealth formulas. Analyze your investment portfolio allocation and diversification score across multiple asset classes. Calculations run in your browser, so nothing you type is sent to a server, and the output is an estimate for planning rather than financial advice.
Portfolio Analysis
| Asset Class | Allocation | Hist. Return |
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Analysis & Recommendations
About Portfolio Allocation Tool
The Portfolio Allocation Tool is a free online financial tool designed to help you make smarter money decisions. Analyze your investment portfolio allocation and diversification score across multiple asset classes. Whether you're planning for the future or analyzing your current financial situation, this calculator provides instant, accurate results tailored to your needs.
Simply enter your details above and get personalized calculations in seconds. Our Portfolio Allocation Tool uses industry-standard formulas and up-to-date financial data to deliver reliable results you can trust. No signup required — completely free to use.
Understanding your finances is the first step to building wealth. Use this tool regularly to track your progress and make informed decisions about your money.
Formula & Mathematical Calculation
Calculation Method
- total: Object.values(allocs).reduce(function(a, b) { return a + b
- w: v ÷ 100
- diversScore: Math.min(10, ((1 - herfindahl) × 10 × (numAssets ÷ 6)).toFixed(1))
- riskWeight: allocs.stocks × 0.8 + allocs.crypto × 1.5 + allocs.realEstate × 0.5 + allocs.commodities × 0.6 + allocs.bonds × 0.2 + allocs.cash × 0
Calculation Example
A portfolio of 60% stocks, 30% bonds, and 10% cash totals 100%, so it calculates. Using the tool's built-in asset-class return assumptions (stocks 10%, bonds 4.5%, cash 2%), the estimated annual return is 0.60 × 10% + 0.30 × 4.5% + 0.10 × 2% = 7.55%, alongside a diversification score and a risk level for the mix.
Key Benefits
- Checks that your allocations total 100% before it will calculate.
- Estimates an annual return by weighting each class by the tool's built-in assumptions.
- Scores diversification from how evenly the weight is spread across classes.
- Reports a risk level for the overall mix so you can compare allocations.
How to Use this Calculator
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Enter each allocation
Type the percentage held in stocks, bonds, real estate, cash, crypto, and commodities in the six allocation fields. -
Make the total 100%
Adjust the percentages until they add up to 100%; the running total must reach 100% (within half a percent) or the tool will not calculate. -
Press Calculate
The tool weights each class by its built-in expected return, sums the weighted returns, and derives a diversification score and risk level from the mix. -
Compare mixes
Change the allocations to see how shifting weight between classes moves the estimated return, diversification score, and risk level.
Assumptions & Limitations
What the calculation assumes
- Every value you enter is treated as an exact, known amount.
- Rates and contributions are assumed to stay constant for the whole period unless the form asks for them separately.
- Results use standard financial formulas and ignore fees, penalties and promotional terms that are not entered above.
- Inflation, tax changes and market volatility are not modelled unless a field for them is provided.
- Amounts are unit-agnostic: results are returned in the same currency you enter.
What it does not cover
- Portfolio Allocation Tool produces estimates for education and planning, not a quote, offer or professional advice.
- Real-world outcomes differ when fees, taxes, rounding rules or provider-specific terms apply.
- Local regulations and tax rules vary by country and change over time; verify current rules for your jurisdiction.
- Figures are only as accurate as the inputs you supply — check them before acting on the result.
- For decisions with lasting financial impact, confirm the numbers with a qualified professional.
Frequently Asked Questions
Free to use, no account needed. Calculations run in your browser, so nothing you type is sent to a server. Results are estimates — how we build and check our calculators.
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