Sharpe Ratio Calculator
Result
Sharpe Ratio Calculator The Sharpe Ratio Calculator measures risk-adjusted return — how much excess return a portfolio earns per unit of volatility. Enter portfolio return, risk-free rate, and standard deviation to get the Sharpe ratio. — free online calculator.
Formula
- Sharpe Ratio Calculator calculates its result from Portfolio Return, Risk-Free Rate, Standard Deviation. It uses the formula Sharpe Ratio = (Portfolio Return - risk_free_rate) / Standard Deviation. Change any input to recalculate the result instantly.
- The main inputs are Portfolio Return, Risk-Free Rate, Standard Deviation. 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: Sharpe Ratio
- Portfolio Return: 12
- Risk-Free Rate: 4
- Standard Deviation: 10
Using Portfolio Return = 12, Risk-Free Rate = 4, Standard Deviation = 10, the calculated result is 0.8.
Sample result: Calculating…
Frequently asked questions
What does the Sharpe Ratio calculate?
Sharpe Ratio Calculator The Sharpe Ratio Calculator measures risk-adjusted return — how much excess return a portfolio earns per unit of volatility. Enter portfolio return, risk-free rate, and standard deviation to get the Sharpe ratio. — free online calculator.
Which values should I enter?
Enter Portfolio Return, Risk-Free Rate, Standard Deviation using the units and format shown beside each field.
What formula does this calculator use?
The calculator uses the following relationship: Sharpe Ratio = (Portfolio Return - risk_free_rate) / Standard Deviation.
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.