Model Portfolio Deviation (MDA) Calculator
Calculate asset allocation deviations from your target model portfolio to help guide rebalancing decisions.
Calculation Parameters
Specify your inputs below.
Calculated Result
Expert Tip
Rebalancing should typically be executed when asset classes drift by more than 5% from their target allocation.
How this Calculator Works
This calculator finds the absolute value of your portfolio, computes the current percentage share of stocks and bonds, and details their drift from targets.
Formula & Methodology
Step-by-Step Calculation Example
Here is a step-by-step example showing how the calculations are performed:
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Detailed Insights & Expert Guide
ℹ️ About this Calculation
This investment analytics calculator evaluates portfolio yield, compounding growth, risk-adjusted returns, present/future asset valuations, and capital growth metrics based on CFA and modern portfolio theory (MPT) principles.
Variable Glossary
Investment Parameters
Initial principal, periodic contribution, interest rate, discount factor, holding period, or asset price inputs.
Performance Metrics
Compound Annual Growth Rate (CAGR %), Net Present Value (NPV), Internal Rate of Return (IRR), or Sharpe ratio.
How to Calculate Step-by-Step
Step 1
Enter your initial investment capital, asset purchase prices, or cash flow streams.
Step 2
Set compounding frequency, discount rate, or benchmark risk-free rate factors.
Step 3
Review calculated total return value, annualized growth %, or risk-adjusted alpha/beta statistics.