Estimate the loss a portfolio should not exceed at a chosen confidence level.
Please do not make financial decisions based on these results.
What is the Value at Risk Calculator (VaR)?
Estimate the loss a portfolio should not exceed at a chosen confidence level. To use the Value at Risk Calculator (VaR), enter portfolio value, daily expected return, daily volatility, confidence level, holding period; it returns value at risk, z-score, var as % of portfolio, and shows them instantly as you type.
Time value of money
A dollar today is worth more than a dollar in the future. The present value calculator and the future value calculator translate money across time, and the finance calculator solves any related unknown. Remember that investment returns are never guaranteed.
How to use the Value at Risk Calculator (VaR)
- Enter your numbers. Start with Portfolio value ($), Daily expected return (%), Daily volatility (%), then fill in Confidence level (%), Holding period (days). Use a rate of return you consider realistic; small changes compound into large differences. Fields marked optional can stay at zero.
- Read the result. The highlighted box gives the Value at Risk, and the cards below show Z-score, VaR as % of portfolio. Tables and charts break it down further.
- Test other scenarios. Results update as you type. Change one value at a time to see what drives the answer, and press Reset to go back to the defaults.
Formula and how it works
Example with real numbers
Here is the Value at Risk Calculator (VaR) using the default values shown in the calculator above:
Inputs
| Portfolio value ($) | 500,000 |
|---|---|
| Daily expected return (%) | 0.04 |
| Daily volatility (%) | 1.2 |
| Confidence level (%) | 95 |
| Holding period (days) | 1 |
Results
| Value at Risk | $9,669.12 |
|---|---|
| Z-score | 1.64 |
| VaR as % of portfolio | 1.93% |
With these inputs the calculator returns Value at Risk: $9,669.12. Change any value in the calculator to see how the result moves.
What if you change one input?
Sensitivity check: raising Portfolio value ($) from 500,000 to 600,000 (about 20% higher) and leaving everything else as in the example above changes the results like this:
| Result | Example | After the change | Change |
|---|---|---|---|
| Value at Risk | $9,669.12 | $11,602.94 | +20% |
| Z-score | 1.64 | 1.64 | 0% |
| VaR as % of portfolio | 1.93% | 1.93% | 0% |
The input that moves the result most is the one to check twice. Change it in the calculator above to test your own case.
What the results tell you
The results panel of the Value at Risk Calculator (VaR) reports Value at Risk, z-score and var as % of portfolio. Compare these figures while changing one input at a time, and use the related calculators below to look at the same situation from another angle.
Method and limits. This calculator applies the formula in the section above to your inputs, in your browser; nothing you enter is stored on our servers. Investment returns are not guaranteed. The result shows what the numbers you enter would produce, not what the market will do. It is for information, not financial, tax or legal advice.
Frequently asked questions
What does a 95% one-day VaR mean?
On 95% of days the loss should be smaller than the VaR; on 5% of days it may be larger.
What rate of return should I assume?
There is no guaranteed rate. Test a range of conservative and optimistic rates, and remember that fees and inflation reduce your real return.
Are investment returns guaranteed?
No. Real returns vary. Use these tools to compare scenarios, not to predict results.
Are the results guaranteed?
No. Results depend entirely on the numbers you enter and the formulas shown on this page. Please do not make financial decisions based on them alone; confirm important figures with a licensed professional.
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