📉 Value At Risk Calculator

Value at Risk (VaR) is a widely used risk metric that estimates the maximum potential loss of a portfolio over a specific time horizon, under normal market conditions, at a given confidence level. Our parametric VaR calculator assumes that asset returns follow a normal distribution – the most common method for quick risk assessment.

This tool empowers investors, analysts, and students to quantify market risk instantly. Simply input portfolio value, confidence level (e.g., 95% or 99%), time horizon in days, and annualized volatility. The calculator applies the formula: VaR = Portfolio Value × (z-score × volatility × √(horizon/252)), using 252 trading days per year. The z-score corresponds to the standard normal deviate (e.g., 1.645 for 95% confidence, 2.326 for 99%).

Advanced uses: you can adjust volatility based on historical data; the horizon scaling is square‑root‑of‑time. Ideal for equity portfolios, single assets, or forex. No registration, unlimited calculations. Remember VaR is not a worst‑case scenario but a probabilistic threshold. Always combine with stress testing. This tool updates instantly and works on any device.

We built this tool with precision, speed, and clarity – part of the MultiCalculators family. Use it for academic projects, personal due diligence, or quick risk snapshots. The clean interface avoids clutter; no ads interfere. We respect your privacy. For full risk disclosure, see our Disclaimer page.