XIRR Auditor
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Enter your allocation across stocks, bonds, and cash with their expected annual returns. See your blended portfolio return, how $10k grows over 10–30 years, and how you compare against a 100% SPY allocation.

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How portfolio blending works

A blended return is the weighted average of each asset class's expected return. If 60% is in stocks returning 10% and 40% is in bonds returning 4%, the blend is 0.6 × 10% + 0.4 × 4% = 7.6%/yr. This model assumes constant weights and no rebalancing friction.

Why diversify if it lowers returns?

Volatility dragHigh volatility reduces long-run compound returns even at the same arithmetic average. Smoother returns compound better.
Drawdown protectionBonds and cash reduce peak-to-trough losses, which shortens recovery time when markets fall.
Behavioral benefitPortfolios that don't crash 50% are easier to hold through downturns without panic-selling.
Rebalancing alphaSystematic rebalancing — selling winners to buy laggards — can add 0.5–1% annually in volatile markets.

Frequently asked questions

What return should I use for stocks?

The long-run US equity return (S&P 500) is approximately 10%/yr nominal, or 7% real after inflation. For international stocks or small-cap tilts, assumptions of 8–12% are common. Use your own view — this calculator is as good as your inputs.

Can I model more than three asset classes?

This calculator uses three rows (Stocks, Bonds, Other/Cash) for simplicity. You can group similar assets — e.g., put REITs and commodities in "Other" and use a blended rate.

Does my actual blended XIRR match this?

Probably not exactly. Your real XIRR depends on when you invested and the actual returns of each asset. Upload your brokerage export to see the real number.

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