Realized Volatility
Calculate Realized Volatility instantly with the exact formula and a worked example.
Realized Volatility
Sum of squared log returns Σr²
Trading days covered by the sum
Trading days per year
Annualized realized volatility
17.3205%
Daily realized variance
0.00011905
Daily volatility
1.091%
Volatility over the whole period
5%
More about: Realized Volatility
What it calculates
The “Realized Volatility” calculator computes Annualized realized volatility in % from 3 parameters: sum of squared log returns σr², trading days covered by the sum, trading days per year.
Used by investors to estimate returns, project savings, and analyze a portfolio.
Example calculation
With parameters Sum of squared log returns Σr² = 0.0025, Trading days covered by the sum = 21, Trading days per year = 252 the result is 17.32 % (RV = √(Σr² · 252 / n), r = log returns).
How to use
- Enter sum of squared log returns σr², trading days covered by the sum and trading days per year — each field above is adjustable with a slider.
- Annualized realized volatility (%) is calculated automatically as you type.
- Check the worked example below to see the formula applied to real numbers.
- Copy the result or bookmark this calculator.
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FAQ
What is compound interest?
Compound interest means you earn returns not only on your original principal but also on previously earned interest. Formula: A = P · (1 + r/n)^(n·t). Over long periods this produces exponential growth.
How much do regular contributions matter?
A lot. Adding a fixed amount every month and reinvesting earnings dramatically increases the final value, especially over 20–30 years, because each contribution compounds for the remaining term.
What is the Rule of 72?
A quick estimate for doubling time: years ≈ 72 / annual return %. At 8% your money doubles in about 9 years; at 12%, in about 6 years.
What return rate should I assume?
Historically the S&P 500 has returned about 10% per year before inflation (around 7% after). Use a conservative figure for planning and remember that past performance does not guarantee future results.
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