Sharpe Ratio Calculator
Calculate the Sharpe Ratio of any trading strategy or portfolio. Enter portfolio return, risk-free rate, and standard deviation of returns to get the risk-adjusted performance score.
Annualized return of your portfolio/strategy
Current short-term government bond yield (e.g. US 3-month T-bill)
Annualized volatility of your returns
Sharpe Ratio
1.050
Acceptable
Rating Scale
Formula
(Return − Risk-Free Rate) ÷ Std DevHow it works
This sharpe ratio calculator runs entirely in your browser — no data is sent to any server. Simply fill in the fields above and the result updates instantly. You can copy the output with the copy button provided.
Frequently Asked Questions
What is the Sharpe Ratio?
The Sharpe Ratio measures how much excess return you earn per unit of risk. Formula: (Portfolio Return − Risk-Free Rate) ÷ Standard Deviation.
What is a good Sharpe Ratio?
Above 1.0 is acceptable, above 2.0 is very good, and above 3.0 is excellent. Below 1.0 means the return doesn't adequately compensate for the risk.
What risk-free rate should I use?
Use the current yield of short-term government bonds (e.g. US 3-month T-bill). For crypto strategies, some traders use 0% as risk-free rate.
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