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
Calculate Sharpe and Sortino ratios to evaluate your investment 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
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