Sharpe Ratio Calculator
Measure the risk-adjusted return of a portfolio or strategy with the Sharpe ratio, from annual return, risk-free rate and volatility.
Result
Enter values to see the result.
How to use the Sharpe Ratio Calculator
- 1Enter your Annual return (in %).
- 2Enter your Risk-free rate (in %).
- 3Enter your Volatility (std dev) (in %).
- 4The result and full breakdown update instantly β no signup, no waiting, and your numbers never leave your browser.
About the Sharpe Ratio Calculator
Measure the risk-adjusted return of a portfolio or strategy with the Sharpe ratio, from annual return, risk-free rate and volatility. It's a free tool in our portfolio tools collection on TheCryptoTools, runs entirely in your browser, and works on mobile. If you found it useful, try Average Entry Price Calculator, Crypto Capital Gains Tax Calculator and Price Target Calculator (Reach Your Goal).
π Learn more
What the Sharpe ratio is, how to calculate it, what a good value looks like, and why volatile crypto portfolios often score lower than you'd expect.
The Sharpe ratio punishes all volatility; the Sortino ratio punishes only losses. For high-upside, high-volatility crypto strategies that difference changes the verdict.
The ten largest crypto assets moved at 0.80 average correlation over the past year. Here is what that number does to a portfolio, why holding more coins barely helps, and what actually reduces risk.
Frequently asked questions
οΌWhat is the Sharpe ratio?
It's return earned above the risk-free rate, divided by volatility: (Return β Risk-free) / Std dev. Higher means you're getting more reward per unit of risk.
οΌWhat's a good Sharpe ratio?
Broadly: below 1 is sub-par, above 1 is good, above 2 is very good and above 3 is excellent. Crypto's high volatility often drags Sharpe ratios down.
οΌWhere do I get volatility?
Use the annualized standard deviation of your returns. Many portfolio trackers and charting tools report it, or you can compute it from historical returns.
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For educational purposes only. Sharpe Ratio Calculator results are estimates, not financial advice.