Online Calculators > Financial Calculators > Sharpe Ratio Calculator
Sharpe Ratio Calculator
Sharpe Ratio Calculator calculate the sharpe ratio to measure an investment's riskadjusted return. Sharpe ratio formula on how to calculate sharpe ratio which uses expected portfolio return, risk free rate and portfolio standard deviation.
Sharpe Ratio Formula
Following is the sharpe ratio formula on how to calculate sharpe ratio.
Sharpe Ratio = (Expected Portfolio Return  Risk Free Rate) / Portfolio Standard Deviation
How to Calculate Sharpe Ratio
Let's see how to use the sharpe ratio formula. Suppose a financial asset has an expected return of 10% with the riskfree rate of 1.5%, and a standard deviation of the asset is 12%,
Sharped Ratio = (0.10.015)/0.12 = 0.71
