Active Return Calculator

Calculate Active Return

Online finance calculator to calculate active return (excess return) to that segment of the returns in an investment portfolio. It can be calculated Return of Portfolio - Return of Benchmark Index

In finance, Active return is the percentage gain or loss of an investment relative to the investment's benchmark. A fund's active return is the percentage gain or loss relative to a benchmark index. It does not include any return that is merely a function of the market's movement. i.e. your security (or portfolio) compared to the market portfolio.

Formula:

Ra = Rp - Rb

where,
Rp = Return of Portfolio
Rb = Return of Benchmark Index
Ra = Active Return

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