CAPM Calculator
Result
CAPM Calculator Use the Capital Asset Pricing Model (CAPM) to find the expected return on an investment for the risk you take. Enter the risk-free rate, the asset's beta, and the expected market return, and this calculator gives the required return and th — free online calculator.
Formula
- CAPM Calculator calculates its result from Risk-Free Rate (%), Beta, Expected Market Return (%). It uses the formula Expected Return = risk_free_rate + Beta * (Market Return - risk_free_rate). Change any input to recalculate the result instantly.
- The main inputs are Risk-Free Rate, Beta, Expected Market Return. Enter them in the units and format shown in the calculator.
- Use monetary amounts, rates and time periods exactly as labeled; the result reflects the assumptions entered on this page.
- Changing any input above recalculates the result with the same calculation engine used by this page.
Example: CAPM
- Risk-Free Rate: 5 %
- Beta: 1.2
- Expected Market Return: 12 %
Using Risk-Free Rate (%) = 5, Beta = 1.2, Expected Market Return (%) = 12, the calculated result is 13.4.
Sample result: Calculating…
Frequently asked questions
What does the CAPM calculate?
CAPM Calculator Use the Capital Asset Pricing Model (CAPM) to find the expected return on an investment for the risk you take. Enter the risk-free rate, the asset's beta, and the expected market return, and this calculator gives the required return and th — free online calculator.
Which values should I enter?
Enter Risk-Free Rate, Beta, Expected Market Return using the units and format shown beside each field.
What formula does this calculator use?
The calculator uses the following relationship: Expected Return = risk_free_rate + Beta * (Market Return - risk_free_rate).
Why might my result differ from another source?
Results can differ when another source uses different units, rounding rules, conventions or assumptions. Compare the inputs and definitions before comparing results.
Does the result update automatically?
Yes. Changing an input updates the result using the same calculation engine shown on this page.