Investing

Sharpe Ratio Calculator

The Sharpe ratio measures how much return you earn per unit of risk taken. Subtract the risk-free rate from portfolio return and divide by the portfolio's standard deviation. Higher values indicate better risk-adjusted performance.

Annualized return of your portfolio

Use current 3-month T-bill or 10-yr treasury yield

Annualized volatility of the portfolio

Risk-Adjusted Performance
Poor (<0)Below avg (0–1)Good (1–2)Excellent (>2)