Sharpe Ratio Calculator
Calculate the Sharpe ratio for a set of investment returns to measure risk-adjusted performance relative to a risk-free rate.
Enter each period's return as a percentage
%
Sharpe Ratio
Sharpe Ratio0.2930
RatingBelow Average
Mean Return2.90%
Excess Return0.90%
Std Deviation3.07%
Periods Analyzed10
FAQ
What is a good Sharpe ratio?›
A Sharpe ratio above 1.0 is generally considered acceptable, above 2.0 is very good, and above 3.0 is excellent. A ratio below 1.0 suggests the portfolio's excess return does not adequately compensate for the volatility risk taken.
What are the limitations of the Sharpe ratio?›
The Sharpe ratio assumes returns are normally distributed and penalizes upside volatility the same as downside volatility. It can also be misleading for strategies with infrequent but large losses. The Sortino ratio addresses some of these issues by only measuring downside deviation.