Risk Tolerance Calculator

Nobody has ever been frightened by “minus 16 per cent”. Enter the amount you are investing and see what a good year and a bad year look like in real money across five risk profiles — so you can pick the one whose bad year you could actually live through.

An illustration of possible one-year movements, not a forecast or a guarantee — general information, not personal advice.

Amount being invested

Everything below is recalculated from this figure. Nothing you type leaves your device.

Best and worst year by portfolio

Every percentage below is editable, so you can put your own portfolio’s range in and see what it would mean in dollars.

Risk profilePortfolioBest year (%)Gain ($)Worst year (%)Loss ($)Ends at (worst)Expected return (%)Growth / defensive

Asset mix and minimum timeframes are the Morningstar risk profile descriptions (Morningstar Investment Management Australia, Risk Tolerance Questionnaire). Defensive is the balance of the growth figure. The expected returns are long-term forward-looking estimates, not historical averages, and are editable — the trade-off chart plots them.

Potential one-year movement on

The trade-off

Higher expected returns are paid for with bigger falls along the way. Every step up this line buys you return and costs you comfort — there is no step that only does the first.

Where you sit on this table is a conversation, not a calculation. The right portfolio is the one you can hold through a bad year — not the one with the best number on a good day.

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The best- and worst-year percentages are assumptions you enter, not predictions. A real market fall can be larger and can last longer than a single year, and the figures shown ignore fees, tax, and any contributions or withdrawals made during the year. This tool gives general information only and does not take into account any person's objectives, financial situation or needs. Consider its appropriateness and obtain personal financial advice before acting.
Please read this before you act on any number above. This financial calculator is not intended to be relied on for the purpose of making a decision in relation to a financial product, and you should consider obtaining advice from a financial services licensee before making any financial decisions. The best- and worst-year percentages are assumptions you can change, not predictions — a real market fall can be larger, and can last a great deal longer, than a single year. Separately, any general advice here has been prepared without taking account of your objectives, financial situation or needs; consider whether it is appropriate for you before acting on it.