Mycalculating.com

Try Our AI Tool

Back to Finance

Portfolio Turnover Ratio Calculator

Measure portfolio trading activity by calculating turnover ratio from purchases, sales, and average portfolio value.

Portfolio Turnover Ratio Calculator

Measure portfolio trading activity by calculating turnover ratio from purchases, sales, and average portfolio value.

Related Calculators

Portfolio analytics

Sector Exposure

Sector allocation analysis.

Tracking Difference

Fund vs benchmark.

Sharpe Ratio

Risk‑adjusted return.

Rolling Return

Performance consistency.

Guide

Understanding portfolio turnover and trading efficiency

Turnover ratio = (Min(Purchases, Sales) / Average Portfolio Value) × 100. It measures how much of the portfolio is traded annually.
Lower turnover (<50%) typically indicates lower transaction costs, better tax efficiency, and buy-and-hold strategies.
Higher turnover (>100%) suggests active trading, which can increase transaction costs, tax liabilities, and reduce net returns.
Use average portfolio value over the period (e.g., beginning + ending / 2, or monthly average) for accurate calculation.
Consider both transaction costs and tax implications when evaluating turnover—high turnover may erode returns through fees and realized gains.

Frequently Asked Questions

Portfolio turnover, trading frequency, and transaction costs

What is portfolio turnover ratio?

Portfolio turnover ratio measures how much of a portfolio is bought and sold over a period, typically expressed as an annual percentage of average portfolio value.

How is turnover ratio calculated?

Turnover = (Min(Total Purchases, Total Sales) / Average Portfolio Value) × 100. Use the minimum to avoid double-counting round-trip trades.

What is a good turnover ratio?

It depends on strategy. Passive portfolios typically have turnover <20%. Active strategies may have 50–200%. Very high turnover (>200%) may indicate excessive trading.

Why does turnover matter?

Higher turnover increases transaction costs, realized capital gains (taxable), and can reduce net returns. Lower turnover is generally more cost-efficient.

How do I calculate average portfolio value?

Use (Beginning Value + Ending Value) / 2, or average monthly/quarterly values. For more precision, use time-weighted averages.

Does turnover include dividends reinvested?

No. Turnover measures trading of securities, not dividend reinvestment. Dividend reinvestment doesn't increase turnover ratio.

Can turnover be negative?

No. Turnover is always positive or zero. If you only buy or only sell, turnover reflects the smaller of purchases or sales relative to portfolio value.

How does turnover affect taxes?

Higher turnover creates more realized gains (and losses), increasing tax liability in taxable accounts. Consider tax-loss harvesting to offset gains.

Should I minimize turnover?

Not necessarily. Some strategies require active trading. The key is ensuring turnover generates value that exceeds transaction costs and taxes.

How often should I calculate turnover?

Calculate annually for reporting, or quarterly for monitoring. Compare to benchmarks and historical turnover to identify trends.

Embed This Calculator

Add this calculator to your website or blog using the embed code below:

<div style="max-width: 600px; margin: 0 auto;">
  <iframe 
    src="https://mycalculating.com/category/finance/portfolio-turnover-ratio-calculator?embed=true" 
    width="100%" 
    height="600" 
    style="border:1px solid #ccc; border-radius:8px;" 
    loading="lazy" 
    title="Portfolio Turnover Ratio Calculator Calculator by MyCalculating.com"
  ></iframe>
  <p style="text-align:center; font-size:12px; margin-top:4px;">
    <a href="https://mycalculating.com/category/finance/portfolio-turnover-ratio-calculator" target="_blank" rel="noopener">
      Use full version on <strong>MyCalculating.com</strong>
    </a>
  </p>
</div>

Open in New Tab

Portfolio Turnover Ratio Calculator

Measure portfolio trading activity by calculating turnover ratio from purchases, sales, and average portfolio value.

How to use Portfolio Turnover Ratio Calculator

Step-by-step guide to using the Portfolio Turnover Ratio Calculator:

Enter your values. Input the required values in the calculator form
Calculate. The calculator will automatically compute and display your results
Review results. Review the calculated results and any additional information provided

Frequently asked questions

How do I use the Portfolio Turnover Ratio Calculator?

Simply enter your values in the input fields and the calculator will automatically compute the results. The Portfolio Turnover Ratio Calculator is designed to be user-friendly and provide instant calculations.

Is the Portfolio Turnover Ratio Calculator free to use?

Yes, the Portfolio Turnover Ratio Calculator is completely free to use. No registration or payment is required.

Can I use this calculator on mobile devices?

Yes, the Portfolio Turnover Ratio Calculator is fully responsive and works perfectly on mobile phones, tablets, and desktop computers.

Are the results from Portfolio Turnover Ratio Calculator accurate?

Yes, our calculators use standard formulas and are regularly tested for accuracy. However, results should be used for informational purposes and not as a substitute for professional advice.