MasterTool

Sharpe Ratio Calculator

Calculate sharpe ratio from your own entered figures.

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Currency: Amounts are calculated in the currency you select; this site does not convert between currencies and does not use live exchange rates.

What this tool does

Calculate sharpe ratio from your own entered figures. Return and volatility must cover the same period; Sharpe treats upside and downside volatility alike and assumes roughly normal returns.

How to use the Sharpe Ratio Calculator

  1. Enter or select portfolio return (%).
  2. Enter or select risk-free rate (%).
  3. Enter or select portfolio standard deviation (%).
  4. Read the calculated result; change any measurement to compare alternatives.

Formula

Sharpe ratio = (portfolio return − risk-free rate) ÷ portfolio standard deviation
rp
Portfolio return (%)
rf
Risk-free rate (%)
sigma
Portfolio standard deviation (%)

Return and volatility must cover the same period; Sharpe treats upside and downside volatility alike and assumes roughly normal returns.

Worked example

For sharpe ratio calculator, the following measurements illustrate the exact method: Portfolio return (%): 10; Risk-free rate (%): 4; Portfolio standard deviation (%): 15.

Inputs

  • Portfolio return (%)10
  • Risk-free rate (%)4
  • Portfolio standard deviation (%)15

Result

  • Sharpe ratio0.4
  • Excess return over the risk-free rate6%

Results explained

Sharpe ratio
Sharpe ratio from the formula above. Return and volatility must cover the same period; Sharpe treats upside and downside volatility alike and assumes roughly normal returns.
Excess return over the risk-free rate
Excess return over the risk-free rate from the formula above. Return and volatility must cover the same period; Sharpe treats upside and downside volatility alike and assumes roughly normal returns.

Frequently asked questions

Sharpe ratio = (portfolio return − risk-free rate) ÷ portfolio standard deviation

Return and volatility must cover the same period; Sharpe treats upside and downside volatility alike and assumes roughly normal returns.

No. All numbers are entered by you or come from the dated reference table shown on this page; calculations run locally.

This is an estimate, not financial, tax or legal advice. Verify the inputs and output with official sources and a qualified professional.

Check period consistency, currency, percentage inputs and the assumptions: Return and volatility must cover the same period; Sharpe treats upside and downside volatility alike and assumes roughly normal returns.