Sharpe ratio calculator
Return earned per unit of volatility taken
Enter an annual return, the risk-free rate and annualized volatility to get the Sharpe ratio and the excess return behind it.
- Sharpe ratio
- 0.56
- Excess return
- 10.00%
What the inputs mean
- Annual return
- Portfolio or strategy return.
- Risk-free rate
- Short-term government rate over the same period.
- Annualized volatility
- Standard deviation of returns, annualized.
Formula
Worked example
14% return, 4% risk-free, 18% volatility → 0.56.
Questions people ask
What counts as a good Sharpe ratio?
Above 1 is strong for a long-horizon portfolio, but the number is only comparable between strategies measured over the same period and frequency.
Limitations
Every result here is arithmetic on the numbers you enter. It carries no view on any specific security, assumes returns are steady when real returns are not, and ignores taxes, slippage and commissions. Use it to size and sanity-check, not to forecast.
Now run it on a real ticker
Score any name free, then bring the number back here.
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Understand the inputs
Autonium publishes research, not recommendations. Scores, factors and written reads describe historical and current data and are not buy or sell advice. Not financial advice. Market data is refreshed on a schedule and may lag. See our methodology and disclosures.