Risk-Adjusted Return Calculator

Use our free Risk-Adjusted Return Calculator to instantly compute Sharpe and Sortino Ratios. Evaluate your portfolio’s true performance—accurately and easily.

Risk-Adjusted Return Calculator

Risk-Adjusted Return Calculator

Calculate Sharpe and Sortino ratios to evaluate your investment performance

Calculator

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Guide

Portfolio Return

Your investment’s average return percentage

Risk-Free Rate

Government bond return (baseline comparison)

Standard Deviation

Total volatility measure (up & down)

Downside Deviation

Negative volatility only (downside risk)

Interpretation

  • Sharpe Ratio: Higher is better (>1 is good)
  • Sortino Ratio: Focuses on downside risk only
  • • Both ratios help compare risk-adjusted performance

Investing isn’t just about returns—it’s about how much risk you’re taking to get them. That’s why risk-adjusted metrics like the Sharpe Ratio and Sortino Ratio are vital for every smart investor.

At StockAverageCalculate.com, we’ve developed a powerful yet simple tool to help you calculate both metrics—instantly and for free.

📊 What Is the Sharpe Ratio?

The Sharpe Ratio measures how much excess return you earn for each unit of total risk (volatility).
Formula:

(Portfolio Return − Risk-Free Rate) ÷ Standard Deviation

A higher Sharpe Ratio means better returns relative to the risk you’re taking.


📉 What Is the Sortino Ratio?

Unlike the Sharpe Ratio, the Sortino Ratio focuses only on downside risk—penalizing only the harmful volatility.
Formula:

(Portfolio Return − Risk-Free Rate) ÷ Downside Deviation

This makes it ideal for investors who care more about losses than overall swings.


⚙️ How to Use the Risk-Adjusted Return Calculator

Just enter:

  • Portfolio Return (%) – Your expected or actual return
  • Risk-Free Rate (%) – Like U.S. Treasury yield
  • Standard Deviation – For Sharpe
  • Downside Deviation – For Sortino

Click Calculate to get both results instantly.


✅ Why Use This Tool?

  • No Sign-Up Required: Free to use anytime
  • Mobile Friendly: Optimized for any device
  • Accurate & Intuitive: Designed with clear logic
  • Trusted by Investors: Built with transparency and finance expertise

👩‍🏫 Who Should Use This Calculator?

This tool is ideal for:

  • DIY investors managing their own portfolios
  • Financial bloggers and educators
  • Students learning portfolio management
  • Wealth managers comparing fund performance

🔐 EEAT Compliance – Why Trust This Tool?

At StockAverageCalculate.com, we prioritize Experience, Expertise, Authoritativeness, and Trustworthiness:

  • ✍️ Our tools are developed by finance enthusiasts and reviewed using verified formulas.
  • 🔍 We avoid jargon and provide clear, honest explanations for every term used.
  • 🔗 All calculations are transparent—no hidden logic or tracking.
  • 🧠 Our mission is financial education, not just traffic.

🧮 Try the Risk-Adjusted Return Calculator Now

👉 Use our free Fractional Share Cost Averaging Calculator to evaluate the true performance of your portfolio.

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