TradingCalculated
Calculations run privately in your browser
Trading Metrics app

Portfolio Turnover Calculator

Calculate how much of a portfolio was replaced over a period, annualise it and estimate the average holding time.

PortfolioIntermediate
Your inputs
$
$
$
Results
Turnover rate25%min(purchases, sales) ÷ average value
Annualised turnover25%average holding ≈ 48 months
A 100% annual turnover means the equivalent of the whole portfolio was replaced once during the year. Higher turnover means more commissions, spreads and (in taxable accounts) realised gains.

Not financial advice. Results are estimates based on the values you enter and simplified assumptions; real trades are affected by fees, slippage, gaps and other factors. Trading involves substantial risk of loss. Read the full disclaimer.

How to calculate portfolio turnover

Turnover = min(Purchases, Sales) ÷ Average portfolio value × 100 Annualised = Turnover × 12 ÷ Months in period

Worked example

  1. Over a year, purchases were $300,000 and sales $340,000; the average portfolio value was $1,200,000.
  2. Turnover = 300,000 ÷ 1,200,000 = 25%.
  3. An implied average holding period of about four years.

How to interpret portfolio turnover

Turnover is a proxy for trading activity and therefore costs. Higher turnover means more commissions, spreads and potentially taxes — fine if the extra trading adds value, expensive if it doesn't.

Trading Costs

Trading Commission Calculator

Calculate flat, percentage or per-share commissions with minimums and maximums, per trade and per year.

0.1% of $9,600 → $9.60 per order
Portfolio

Diversification Ratio Calculator

Compare the weighted volatility of your holdings with the portfolio's actual volatility.

Weighted σ 14.5% / portfolio σ 12% → 1.21
Trading Costs

Spread Cost Calculator

Turn a bid-ask spread into money per trade, pips and monthly cost.

EUR/USD 0.8 pips × 1 lot → $8

Turnover calculator FAQ

Why use the smaller of purchases and sales?

It excludes trading caused by deposits or withdrawals, so turnover reflects deliberate repositioning.

What is a high turnover?

Index funds often run below 10% a year; active funds 50–100%; active traders far above 100%.