Portfolio Immunization Calculator
Weights of a short and long bond that match a liability's duration — the classic two-bond immunization solve.
Formula
Matching portfolio duration to the liability horizon makes price risk and reinvestment risk offset for small parallel shifts — Redington immunization. Rebalance as durations drift and prefer the barbell with convexity exceeding the liability's.
Not financial advice — for informational and analytical use only. Verify all figures with a qualified professional before acting on them.
Need portfolio immunization calculator results fast? Analysts, founders, traders and finance professionals use the Portfolio Immunization Calculator to skip the spreadsheet and get a defensible answer in one step — free, private and instant.
About Portfolio Immunization Calculator
Weights of a short and long bond that match a liability's duration — the classic two-bond immunization solve. Matching portfolio duration to the liability horizon makes price risk and reinvestment risk offset for small parallel shifts — Redington immunization. Rebalance as durations drift and prefer the barbell with convexity exceeding the liability's. The governing relationship is w_S·D_S + (1−w_S)·D_L = D_liability. The Portfolio Immunization Calculator computes entirely in your browser — free, private (your figures never leave your device) and instant, recalculating live as you change any input.
How to use Portfolio Immunization Calculator
- 1Enter Liability duration (horizon) (years), Amount to invest (currency), Short bond duration (years), Long bond duration (years) into the Portfolio Immunization Calculator.
- 2The result is computed automatically using w_S·D_S + (1−w_S)·D_L = D_liability — there is no button to press.
- 3Change any input to model a different scenario, then copy or share the result.
Why use Portfolio Immunization Calculator?
- ✓Computes portfolio immunization calculator instantly with the correct formula — no spreadsheet needed
- ✓100% free and unlimited, with no sign-up, login or paywall
- ✓Runs entirely in your browser, so the figures you enter stay private
- ✓Shows the formula, a live worked example and references so you can defend the number
Frequently asked questions
What is the formula behind the Portfolio Immunization Calculator?+
Portfolio Immunization Calculator uses w_S·D_S + (1−w_S)·D_L = D_liability. Matching portfolio duration to the liability horizon makes price risk and reinvestment risk offset for small parallel shifts — Redington immunization. The tool substitutes your actual inputs into this relationship and shows the worked example step by step.
What inputs does the Portfolio Immunization Calculator need?+
Enter Liability duration (horizon) (years), Amount to invest (currency), Short bond duration (years), Long bond duration (years) and the result updates immediately — there is no button to press. Change any value to model a different scenario in real time.
Is the Portfolio Immunization Calculator free, and is my data private?+
Yes — it is completely free with no sign-up or usage limit, and it runs entirely in your browser, so the numbers you enter are never uploaded or stored on any server. It is for informational and analytical use, not financial advice.
What should I watch out for when using the Portfolio Immunization Calculator?+
Rebalance as durations drift and prefer the barbell with convexity exceeding the liability's.
What is the Portfolio Immunization Calculator based on?+
The method follows authoritative sources: Redington (1952); CFA — liability-driven investing. The formula and references are shown on the page so you can verify and cite the result.
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