Enter the expected weighted return, z-score, standard deviation, and the total value of a portfolio to calculate the value at risk.

- Z-Score Calculator
- Confidence Interval Calculator (1 or 2 means)
- Relative Standard Deviation Calculator
- Variable Overhead Calculator

## Value At Risk Formula

The following formula is used to calculate a value at risk.

VaR = [EWR - (Z*STD)] * PV

- Where Var is the value at risk
- EWR is the expected weighted return of the portfolio
- Z is the z score
- STD is the standard deviation
- PV is the portfolio value

To calculate value at risk, multiply the standard deviation return by the z score, subtract this result from the expected weighted return, then finally multiply by the portfolio value.

## Value At Risk Definition

A value at risk is defined as the likelihood of an investment portfolio exceeding a certain amount of monetary loss.

## Value At Risk Example

How to calculate value at risk?

**First, determine the expected weighted return.**Calculate the expected return.

**Next, determine the z score and standard deviation.**Calculate the z score and standard deviation.

**Next, determine the portfolio value.**Calculate the portfolio value.

**Finally, calculate the value at risk.**Calculate the value at risk using the formula above.

## FAQ

**What is VAR?**

VAR stands for value at risk. It is a measure of the confidence or likelihood of a given portfolio exceeding a certain loss. In other words, t’s a minimum loss in dollars over a given period based on probability of past performance.