Leveraged ETF Volatility Decay Calculator

See how daily market volatility silently erodes capital in 2× and 3× leveraged ETFs (TQQQ, UPRO, SOXL) — even when the underlying index ends flat. Enter your capital, daily volatility, and leverage factor to project the day-by-day value over 30 trading days.

Calculator Inputs

%

3× Leveraged ETF — Day 30

₹97,005

-2.99% cumulative return

1× Benchmark — Day 30

₹99,663

-0.34% cumulative return

DayDirection3× Daily3× Value (INR)3× Cumul.1× Value (INR)1× Cumul.
1 Up+4.50%₹1,04,500+4.50%₹1,01,500+1.50%
2 Down-4.50%₹99,798-0.20%₹99,977-0.02%
3 Up+4.50%₹1,04,288+4.29%₹1,01,477+1.48%
4 Down-4.50%₹99,595-0.40%₹99,955-0.04%
5 Up+4.50%₹1,04,077+4.08%₹1,01,454+1.45%
6 Down-4.50%₹99,394-0.61%₹99,933-0.07%
7 Up+4.50%₹1,03,866+3.87%₹1,01,432+1.43%
8 Down-4.50%₹99,192-0.81%₹99,910-0.09%
9 Up+4.50%₹1,03,656+3.66%₹1,01,409+1.41%
10 Down-4.50%₹98,992-1.01%₹99,888-0.11%
11 Up+4.50%₹1,03,446+3.45%₹1,01,386+1.39%
12 Down-4.50%₹98,791-1.21%₹99,865-0.13%
13 Up+4.50%₹1,03,237+3.24%₹1,01,363+1.36%
14 Down-4.50%₹98,591-1.41%₹99,843-0.16%
15 Up+4.50%₹1,03,028+3.03%₹1,01,340+1.34%
16 Down-4.50%₹98,391-1.61%₹99,820-0.18%
17 Up+4.50%₹1,02,819+2.82%₹1,01,317+1.32%
18 Down-4.50%₹98,192-1.81%₹99,798-0.20%
19 Up+4.50%₹1,02,611+2.61%₹1,01,295+1.29%
20 Down-4.50%₹97,993-2.01%₹99,775-0.22%
21 Up+4.50%₹1,02,403+2.40%₹1,01,272+1.27%
22 Down-4.50%₹97,795-2.21%₹99,753-0.25%
23 Up+4.50%₹1,02,196+2.20%₹1,01,249+1.25%
24 Down-4.50%₹97,597-2.40%₹99,730-0.27%
25 Up+4.50%₹1,01,989+1.99%₹1,01,226+1.23%
26 Down-4.50%₹97,399-2.60%₹99,708-0.29%
27 Up+4.50%₹1,01,782+1.78%₹1,01,204+1.20%
28 Down-4.50%₹97,202-2.80%₹99,685-0.31%
29 Up+4.50%₹1,01,576+1.58%₹1,01,181+1.18%
30 Down-4.50%₹97,005-2.99%₹99,663-0.34%

How Volatility Decay (Beta Decay) Works

This simulation uses an alternating up/down model: odd-numbered days the underlying rises by your Daily Volatility %, and even-numbered days it falls by the same amount. The index ends each two-day pair exactly flat — yet the 3× ETF compounds the move at 3× each day, producing a net loss. After one up/down pair, the leveraged ETF retains only (1 – 3² × σ²) of its value. This is beta decay or volatility drag, and it scales quadratically with both leverage and volatility.