Treynor Ratio
Compare excess return per unit of market beta.
Your numbers
Treynor ratio (decimal return)
Educational estimate using your assumptions; no live rates, tax rules or investment recommendations. Returns can be negative and are not guaranteed.
Scenario comparison
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Formula
Use T = (R−F)/β. R and F are the period return and same-period risk-free return as fractions; β is the entered positive market beta. The result uses decimal return per unit of beta.
Compare excess return per unit of market beta.
Worked example
- Period return (%)
- 10
- Same-period risk-free return (%)
- 2
- Positive market beta
- 1
- Treynor ratio (decimal return)
- 0.08
Scope and limitations
Educational estimate using your assumptions; no live rates, tax rules or investment recommendations. Returns can be negative and are not guaranteed.
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: 22ad5309e420 · Example checked: