About the Sharpe Ratio Calculator
The Sharpe ratio tells you how much return you earned for each unit of risk you took. Paste the returns for each period, such as monthly percentages from a fund statement or a trading journal, choose how long each period is and enter the risk-free rate. The calculator shows the yearly Sharpe ratio, the Sortino ratio that only counts downside swings, the average return, the standard deviation, the total and annualised return and the largest fall from a peak. Everything is calculated in your browser, so your numbers stay private. Past returns do not predict future results.
Updated October 2026
How to use the Sharpe Ratio Calculator
- 1Paste your returns for each period as percentages, separated by commas, spaces or new lines.
- 2Choose the period length: day, week, month, quarter or year.
- 3Enter the yearly risk-free rate, such as a treasury bill yield.
- 4Read the yearly Sharpe ratio, and compare with the Sortino ratio.
- 5Check the maximum drawdown to see how deep the worst fall was.
What the ratio measures
Two funds can both return 10 percent a year, but one may get there smoothly while the other lurches up and down. The Sharpe ratio rewards the smooth path, because it divides your excess return by the volatility. A higher ratio means you were paid more for each unit of risk, which makes it a fair way to compare strategies with different levels of risk.
The ratio assumes returns are roughly bell shaped and independent. Strategies that sell insurance, such as short options, can show a high Sharpe ratio for years before a rare large loss, so read it together with the drawdown.
Choosing the right period and risk-free rate
- Use the same period for all numbers: do not mix daily and monthly figures.
- Daily trading data uses 252 periods a year, weekly uses 52 and monthly uses 12.
- Use a risk-free rate for the same currency and a similar horizon, such as a one-year bill.
- Enter 0 if you only want return divided by volatility.
- Include at least a year or two of data where possible.
Related tools
For a single bet, the Kelly Criterion Calculator shows how much to risk. The Standard Deviation Calculator explains the spread behind the ratio, the CAGR Calculator turns a start and end value into a yearly growth rate, and the Average Return Calculator averages a list of returns without risk. Keep in mind that the page is an educational calculator and not advice.
Features
- Sharpe and Sortino ratios
- Annualised from daily, weekly, monthly, quarterly or yearly data
- Total and annualised return
- Maximum drawdown from a peak
- Sample standard deviation
- Clear error for non-numbers or constant returns
- Private, runs in your browser
Frequently asked questions
What is a good Sharpe ratio?
As a rough guide, below 1 is modest, 1 to 2 is good and above 2 is very good, but it depends on the strategy and how long the record is. A short run of lucky months can look excellent.
How is the Sharpe ratio calculated?
It is the average return above the risk-free rate divided by the standard deviation of the returns. The yearly figure multiplies the per-period ratio by the square root of the number of periods in a year.
What is the Sortino ratio?
It is like the Sharpe ratio but divides by the size of the downside moves only, so large gains are not counted as risk. It is higher than the Sharpe ratio when most of the volatility is on the upside.
What is maximum drawdown?
It is the largest percentage fall from a previous high point to a later low in the series of returns, which shows how painful the worst stretch was.
How many returns do I need?
At least three are needed to run the maths, but a reliable ratio needs dozens of periods. With few points the standard deviation is very uncertain.
Should I enter percentages or decimals?
Enter percentages: 2.5 means 2.5 percent. A percent sign after a number is accepted and ignored.
Does this account for fees?
Only if the returns you paste are already net of fees. The tool does not add or remove costs, and the output is not financial advice.