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Sharpe Ratio Calculator — Risk-Adjusted Return

Calculate Sharpe ratio from your return, volatility, and the risk-free rate. Includes annualization for monthly data and a benchmark scale.

US 10Y yield is the common benchmark (~4.3% in 2026).

Sharpe ratio
1.10

Good

Where your strategy sits
0 (poor)1 (good)2 (excellent)3+ (rare)
Sharpe ratio = (return − risk-free rate) ÷ standard deviation. It measures how much return you earned per unit of risk. The S&P 500 sits at roughly 0.5 long-term. Renaissance Medallion (the legend) was ~2.5+ for decades. Anything above 3 over a long sample is either a unicorn or wrong.
About this tool

Why Sharpe is the standard benchmark

Two strategies both make 15% a year. Strategy A swings wildly, +60% one quarter and −30% the next. Strategy B clocks a steady 3.5% per quarter. Same average return, very different rides. The Sharpe ratio captures the difference: it's your excess return divided by the volatility you suffered to get it.

The formula

Sharpe = (return − risk-free rate) ÷ standard deviation. The S&P 500 sits at roughly 0.5 long-term. Anything over 1.0 is good. Renaissance Technologies' Medallion fund ran north of 2.5 for decades — that's legendary territory. If you're calculating Sharpe over 3.0 from a small sample, double-check your inputs — you're either underestimating volatility or counting an outlier good period.

Monthly vs annual

If your inputs are monthly returns, annualise the Sharpe by multiplying by √12. The tool does this for you when you switch to monthly mode.

How to use the Sharpe Ratio Calculator

Takes about a minute. No signup, no download, your data stays in your browser.

  1. 1
    Open the tool. Scroll up to the Sharpe Ratio Calculator above — it loads instantly in your browser, no install needed.
  2. 2
    Enter your values. The fields come pre-filled with realistic defaults so you can see how it works — replace them with your own numbers.
  3. 3
    Read the result. The output updates instantly. Copy or share it — nothing is uploaded to a server, everything stays on your device.

Frequently asked questions

Common questions about the Sharpe Ratio Calculator.

Is the Sharpe Ratio Calculator free to use?

Yes. The Sharpe Ratio Calculatoron 7BusyBoss is completely free — no signup, no paywall, no usage cap.

Do I need to sign up to use the Sharpe Ratio Calculator?

No. The Sharpe Ratio Calculatorworks instantly in your browser — no account needed. Signing in with Google is optional and only unlocks features like saving favorites and higher AI build limits.

Does the Sharpe Ratio Calculator work on mobile?

Yes. Every tool on 7BusyBoss is mobile-responsive and works in any modern browser — Chrome, Safari, Firefox, Edge — on phones, tablets and desktops.

Is my data safe when I use the Sharpe Ratio Calculator?

Yes. The Sharpe Ratio Calculatorruns entirely in your browser — your inputs never leave your device unless the tool explicitly fetches public data (e.g. currency rates). We don't store the values you type.

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