Sharpe Ratio Calculator

Measure risk-adjusted return using portfolio return, risk-free rate, and volatility.

Risk-adjusted return inputs

Compare portfolio return with risk-free rate and volatility to estimate the Sharpe ratio.

Portfolio return

Risk-free rate

Volatility

Benchmark return

Benchmark vol.

Sharpe ratio

0.5

Positive but modest

Excess return

Benchmark Sharpe

0.357

Active return

+3%

Volatility gap

+2%

Portfolio volatility minus benchmark volatility.

Related calculators

Portfolio Rebalancing CalculatorCalculate trades needed to restore target asset allocation across stocks, bonds, cash, and other assets.
Stock Average Price CalculatorCalculate average cost, total shares, break-even price, and profit or loss after multiple stock purchases.
Compound Interest CalculatorEstimate future value, total contributions, interest earned, and the rule-of-72 timeline from an initial investment and monthly deposits.
PER/PBR CalculatorCalculate price-to-earnings, price-to-book, earnings yield, ROE estimate, and target price by PER.
Gold Price CalculatorCalculate gold value from grams, troy ounces, karat purity, spot price, exchange rate, and dealer premium.
DCF CalculatorEstimate intrinsic value using free cash flow forecasts, discount rate, terminal value, and net debt.

What the Sharpe ratio measures

The Sharpe ratio compares excess return with volatility. A higher value means the portfolio earned more return for each unit of risk, assuming the return and volatility inputs are measured over the same period.

Comparing with a benchmark

Enter benchmark return and volatility to see whether the portfolio is improving risk-adjusted performance or simply taking more risk for a higher headline return.