Understanding the expected rate of return for your investment portfolio is crucial for long-term financial planning. This calculator helps you estimate the potential overall return based on the expected returns and allocations of its individual components.
function calculateExpectedReturn() {
var asset1Weight = parseFloat(document.getElementById("asset1Weight").value);
var asset1Return = parseFloat(document.getElementById("asset1Return").value);
var asset2Weight = parseFloat(document.getElementById("asset2Weight").value);
var asset2Return = parseFloat(document.getElementById("asset2Return").value);
var asset3Weight = parseFloat(document.getElementById("asset3Weight").value);
var asset3Return = parseFloat(document.getElementById("asset3Return").value);
var resultDiv = document.getElementById("result");
resultDiv.innerHTML = ""; // Clear previous result
if (isNaN(asset1Weight) || isNaN(asset1Return) || isNaN(asset2Weight) || isNaN(asset2Return) || isNaN(asset3Weight) || isNaN(asset3Return)) {
resultDiv.innerHTML = "Please enter valid numbers for all fields.";
return;
}
var totalWeight = asset1Weight + asset2Weight + asset3Weight;
if (Math.abs(totalWeight – 100) > 0.01) { // Allow for small floating point inaccuracies
resultDiv.innerHTML = "The total allocation weight must sum to 100%. Current sum: " + totalWeight.toFixed(2) + "%.";
return;
}
var weightedReturn1 = (asset1Weight / 100) * asset1Return;
var weightedReturn2 = (asset2Weight / 100) * asset2Return;
var weightedReturn3 = (asset3Weight / 100) * asset3Return;
var totalExpectedReturn = weightedReturn1 + weightedReturn2 + weightedReturn3;
var asset1Name = document.getElementById("asset1Name").value || "Asset 1";
var asset2Name = document.getElementById("asset2Name").value || "Asset 2";
var asset3Name = document.getElementById("asset3Name").value || "Asset 3";
resultDiv.innerHTML = "The portfolio's expected rate of return is: " + totalExpectedReturn.toFixed(2) + "%.";
}