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Portfolio Diversification Score Calculator

Composite score captures multi-dimensional diversification.

Composite score

7.7

Geographic score

6

Tenant score

9.6

How the math works

Composite = avg of geographic, asset, tenant scores.

6 markets = 6.0 geo + 3 × 2.5 = 7.5 asset + log2(86) × 1.5 = 9.6 tenant = 7.7 composite.

How to Use

  1. Enter # geographic markets.
  2. Enter # asset classes.
  3. Enter # tenants or loans.
  4. Read composite diversification score.

Frequently Asked Questions

Scoring method?

Each dimension scored 0-10. Geographic: 1=single market, 10=10+ markets. Asset: 1=single class, 10=diversified. Tenant: 1=single tenant, 10=50+ tenants. Composite = weighted average.

Target scores?

Institutional target: 7+ composite. Private equity target: 5-7. Family office: 4-6. Single asset fund: 1-3. Score drives lender pricing, LP interest, and overall portfolio risk profile.

Improvement strategies?

Geographic: acquire in new markets, dispose from over-weighted. Asset: add complementary classes (office + multi + industrial). Tenant: lease to diverse industries, limit top 10 concentration. Each dimension takes 2-5 years to meaningfully improve.

How often should I rerun this?

Rerun this calculator whenever inputs change materially — new rent roll data, rate moves, loan balance updates, or quarterly operating data. For active deals, monthly refresh is typical. For stabilized assets under monitoring, quarterly is fine. Treat the output as a decision tool, not a one-time answer — market conditions evolve and so should your analysis.

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