Sharpe Ratio Calculator
Calculate the Sharpe Ratio of your portfolio or investment. Measure if your excess returns justify the risk taken compared to a risk-free rate.
Sharpe Ratio Calculator
Measure risk-adjusted return of an investment portfolio
Investment Examples
Volatility Profile
Sharpe Ratio
0.42
| Excess Return (Alpha Premium) | 6.30% |
| Risk Penalty (Standard Div) | 15.00% |
Quality of Strategy Scale
0.0 (Poor)
2.0+ (Excellent)
How to Use Sharpe Ratio Calculator in 3 Easy Steps
1
Step 1
Enter your expected or historical portfolio return.
2
Step 2
Provide the current risk-free rate (e.g., US Treasury yield).
3
Step 3
Input the standard deviation of your portfolio returns.
Frequently Asked Questions
A Sharpe Ratio of 1.0 is generally considered good, 2.0 is very good, and 3.0 is excellent.
We subtract it to see how much return you are making specifically from taking risk, rather than what you could have made for free in government bonds.
Yes. A negative Sharpe Ratio means that the risk-free rate is higher than the investment return, or the investment itself had a negative return.