Sharpe Ratio Calculator

Evaluate risk-adjusted returns of a portfolio.

Portfolio Return (%)

Risk-free Rate (%)

Portfolio Volatility (%)

Live Calculation

Sharpe Ratio

0.80

Live Step-by-Step Calculation

# Given Values:

Portfolio Return: 12

Risk-free Rate: 4

Portfolio Volatility: 10

# Formula:
Sharpe Ratio = (rp - rf) / std

# Substitution:
Sharpe Ratio = (12 - 4) / 10

Final Answer: 0.8

How it works

Sharpe = \frac{R_p - R_f}{\sigma_p}

Biological Formula Standard

How it Works

Sharpe = \frac{R_p - R_f}{\sigma_p}

AI Insight

Did you know? Consistent tracking of these metrics can help identify trends over time. Try adjusting the inputs to see how sensitive the result is to each variable.

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