Sharpe Ratio
Compare excess return with total return volatility.
Your numbers
Sharpe ratio
Educational estimate using your assumptions; no live rates, tax rules or investment recommendations. Returns can be negative and are not guaranteed. Use matching return periods. This does not annualize or estimate volatility from prices.
Scenario comparison
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Formula
Use S = (R−F)/σ. R is period return, F is the risk-free return, and σ is volatility. All three inputs must use the same period and consistent rate units.
Compare excess return with total return volatility.
Worked example
- Period return (%)
- 10
- Same-period risk-free return (%)
- 2
- Same-period volatility (%)
- 16
- Sharpe ratio
- 0.5
Scope and limitations
Educational estimate using your assumptions; no live rates, tax rules or investment recommendations. Returns can be negative and are not guaranteed. Use matching return periods. This does not annualize or estimate volatility from prices.
Inputs are checked for missing values and allowed ranges. A result outside the finite numeric range is not displayed. Rounding affects display, while the calculation uses the model’s numeric precision.
Check your units and assumptions before relying on a result. Changing a label does not convert a currency or physical unit.
Formula version: 4003e4b175ca · Example checked: