How to use the Sharpe Ratio Calculator

Measure risk-adjusted excess returns with the annualized Sharpe ratio formula.

Calculation formula

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

Recommended steps

1. Enter values using the units shown beside each field.
2. Review whether the example assumptions match your situation.
3. Run the calculator and compare the key metrics.
4. Use the source data or official rates when precision matters.

Known limitations

All inputs must refer to the same annualized period. Simplified ex-post/ex-ante ratio, without transaction costs or distribution adjustments.