Portfolio Beta Calculator
Calculate your portfolio's systematic risk: weighted beta, classification, leverage equivalent, and sensitivity scenarios.
Add at least one holding to see your portfolio beta.
How It Works
Portfolio beta measures your portfolio's sensitivity to market movements. By entering each holding's ticker, weight, and individual beta, this calculator computes your portfolio's weighted-average beta: a single number that tells you how much your portfolio is expected to move when the overall market moves by 1%.
The calculator also converts this into a leverage equivalent (how much implicit leverage you carry) and generates a sensitivity table showing expected portfolio moves for various market scenarios. A classification badge (defensive, neutral, or aggressive) gives you an at-a-glance risk profile.
The Formula
Portfolio Beta = Σ (w_i × β_i) where w_i = weight of holding i (as decimal) and β_i = beta of holding i
FAQ
What is portfolio beta?
Portfolio beta measures how much your portfolio moves relative to the market. A beta of 1 means your portfolio moves in lockstep with the market. A beta of 1.5 means your portfolio is 50% more volatile than the market: it amplifies both gains and losses.
How is portfolio beta calculated?
The formula is a weighted average: Σ (weight_i × beta_i). Each holding’s beta is multiplied by its portfolio weight (as a decimal), then summed across all holdings. Weights are entered as percentages (0, 100) and converted to decimals internally.
What do the classification labels mean?
A defensive portfolio (beta < 0.8) is less sensitive to market moves and may suit conservative investors. A neutral portfolio (0.8 ≤ beta ≤ 1.2) tracks the market. An aggressive portfolio (beta > 1.2) amplifies market movements and typically carries higher risk and higher potential return.
What is leverage equivalent?
Leverage equivalent shows how much implicit leverage your portfolio carries relative to the market. It is computed as (beta × 100) − 100. For example, beta = 1.5 gives 50% leverage equivalent, meaning your portfolio behaves like the market with 50% added leverage.
Does beta capture all investment risk?
Yes. Beta measures systematic risk: the risk tied to overall market movements. It does not capture unsystematic risk such as company-specific news, management changes, or sector-specific shocks. Diversification across uncorrelated assets reduces unsystematic risk.
Related Tools
Explore maximum drawdown, Sharpe ratio, and portfolio temperature to complete your risk toolkit.