Portfolio Insurance Cost Calculator
Annual cost of rolling index-put protection at different OTM depths — the hedging-drag number before you commit.
Formula
Permanent put protection historically costs 3-5% a year on equities — more than the crashes it insures against, on average. Research favors alternatives: lower equity weight, trend overlays, or episodic hedging when vol is cheap and risk is visible.
Not financial advice — for informational and analytical use only. Verify all figures with a qualified professional before acting on them.
Disclaimer: This tool is for general informational and estimation purposes only and is not professional financial, tax, accounting or legal advice. All figures are estimates — verify with a qualified professional before making decisions. Read the full disclaimer.
Need portfolio insurance cost calculator results fast? Analysts, founders, traders and finance professionals use the Portfolio Insurance Cost Calculator to skip the spreadsheet and get a defensible answer in one step — free, private and instant.
About Portfolio Insurance Cost Calculator
Annual cost of rolling index-put protection at different OTM depths — the hedging-drag number before you commit. Permanent put protection historically costs 3-5% a year on equities — more than the crashes it insures against, on average. Research favors alternatives: lower equity weight, trend overlays, or episodic hedging when vol is cheap and risk is visible. The governing relationship is annual drag = roll cost % × rolls per year. The Portfolio Insurance Cost 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 Insurance Cost Calculator
- 1Enter Portfolio value (currency), Put cost per roll (% of notional), Rolls per year, Expected portfolio return (%) into the Portfolio Insurance Cost Calculator.
- 2The result is computed automatically using annual drag = roll cost % × rolls per year — there is no button to press.
- 3Change any input to model a different scenario, then copy or share the result.
Why use Portfolio Insurance Cost Calculator?
- ✓Computes portfolio insurance cost 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 Insurance Cost Calculator?+
Portfolio Insurance Cost Calculator uses annual drag = roll cost % × rolls per year. Permanent put protection historically costs 3-5% a year on equities — more than the crashes it insures against, on average. The tool substitutes your actual inputs into this relationship and shows the worked example step by step.
What inputs does the Portfolio Insurance Cost Calculator need?+
Enter Portfolio value (currency), Put cost per roll (% of notional), Rolls per year, Expected portfolio return (%) 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 Insurance Cost 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 Insurance Cost Calculator?+
Research favors alternatives: lower equity weight, trend overlays, or episodic hedging when vol is cheap and risk is visible.
What is the Portfolio Insurance Cost Calculator based on?+
The method follows authoritative sources: Israelov (2017) — Pathetic Protection: the elusive benefits of protective puts. The formula and references are shown on the page so you can verify and cite the result.
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