Value at Risk Calculator (VaR)
Results are estimates based on the values you enter. Recheck your inputs and assumptions before using the output for decisions.
Estimate value at risk from portfolio value, confidence level, daily volatility, and holding period.
Value at Risk Calculator (VaR)
Free online value at risk calculator to estimate the potential loss of a portfolio at a selected confidence level. This calculator is useful for investors, traders, finance students, risk managers, and analysts who want a quick estimate of how much a portfolio could lose over a short period under normal market conditions. Value at risk, often written as VaR, is one of the most widely used risk metrics in finance because it turns market volatility into a practical loss estimate. It does not predict the exact future, but it gives a clear loss threshold tied to a chosen confidence level and time horizon.
This calculator uses four main inputs. Portfolio value means the total current market value of the investment or trading portfolio. Confidence level means the statistical confidence used in the risk estimate, such as 90%, 95%, or 99%. Daily volatility means the expected day-to-day percentage movement of the portfolio. Holding period means the number of days for the risk estimate. Once those values are entered, the calculator shows one-day VaR, holding period VaR, holding period VaR as a portfolio percentage, and portfolio value after VaR. These outputs help you see both the estimated loss amount and the share of the portfolio that is exposed at the chosen confidence level.
The formula of value at risk
One-day VaR = Portfolio value x Z-score x Daily volatility
Holding period VaR = One-day VaR x square root of holding period days
Holding period VaR (%) = Holding period VaR / Portfolio value x 100
Portfolio value after VaR = Portfolio value – Holding period VaR
Here portfolio value means the current value of the portfolio, Z-score means the confidence-level multiplier such as 1.2816 for 90%, 1.6449 for 95%, and 2.3263 for 99%, daily volatility means the expected daily percentage movement of the portfolio, holding period days means the number of days in the risk estimate, one-day VaR means the estimated one-day loss threshold, and holding period VaR means the estimated loss threshold over the chosen number of days.
Solved Example
Example 1: Find the VaR if portfolio value is $250,000, confidence level is 95%, daily volatility is 2%, and holding period is 10 days.
Solve: One-day VaR = 250000 x 1.6449 x 2% = $8,224.50
Holding period VaR = 8224.50 x square root of 10 = $26,012.92
Holding period VaR (%) = 26012.92 / 250000 x 100 = 10.4052%
Portfolio value after VaR = 250000 – 26012.92 = $223,987.08
Example 2: Find the result if portfolio value is $100,000, confidence level is 90%, daily volatility is 1.5%, and holding period is 5 days.
Solve: One-day VaR = 100000 x 1.2816 x 1.5% = $1,922.40
Holding period VaR = 1922.40 x square root of 5 = $4,298.56
Holding period VaR (%) = 4.2986%
Portfolio value after VaR = $95,701.44
Example 3: Find the result if portfolio value is $500,000, confidence level is 99%, daily volatility is 1.2%, and holding period is 20 days.
Solve: One-day VaR = 500000 x 2.3263 x 1.2% = $13,957.80
Holding period VaR = 13957.80 x square root of 20 = $62,423.93
Holding period VaR (%) = 12.4848%
Portfolio value after VaR = $437,576.07
Table of value at risk calculator
| Portfolio Value | Confidence | Daily Volatility | Days | Holding Period VaR |
|---|---|---|---|---|
| $100,000 | 90% | 1.5% | 5 | $4,298.56 |
| $250,000 | 95% | 2.0% | 10 | $26,012.92 |
| $500,000 | 99% | 1.2% | 20 | $62,423.93 |
| $750,000 | 95% | 1.0% | 15 | $47,772.42 |
How to use this value at risk calculator
Enter the portfolio value in the proper input field. After that, choose the confidence level and enter daily volatility as a percentage. Then enter the holding period in days and click the calculate button. The calculator will show one-day VaR, holding period VaR, holding period VaR as a percentage of the portfolio, and portfolio value after VaR in the result box.
This calculator is especially useful for short-term risk checks, risk reporting, and comparing the risk profile of different portfolios. By changing the confidence level or volatility, you can see how a higher confidence threshold or a more volatile portfolio leads to a larger VaR estimate. A longer holding period also increases VaR because the estimate scales with the square root of time.
When using the result, remember that VaR is an estimate based on assumptions about volatility and normal market behavior. It does not show the worst possible loss, and it does not fully capture extreme market shocks. Even so, value at risk remains one of the clearest practical tools for turning volatility into a decision-ready risk number. This calculator gives a fast way to estimate likely loss thresholds and compare portfolio risk under different assumptions.