CandleChasers

PORTFOLIO & PERFORMANCE

Sharpe Ratio Calculator

Measure periodic excess return relative to sample return volatility.

Your inputs

Use one currency throughout. Results update as you type.

Your result

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How to use this calculator

Adjust the inputs to your own scenario, then review the result alongside the assumptions below. The $ symbol is a currency label; the tool does not convert exchange rates.

Worked example

At a 0% risk-free rate, equal-sized positive and negative returns have a zero mean and therefore zero Sharpe.

The formula

Annualized Sharpe = mean(periodic return − periodic risk-free return) ÷ sample standard deviation × sqrt(periods/year).

What the result means

Compare the output with the stated assumptions. Changing an input changes the arithmetic; it does not establish how a real trade or investment will perform.

Assumptions and limitations

Uses arithmetic mean and sample standard deviation, equally spaced observations, and an effective annual risk-free rate. Square-root annualization assumes suitable return behavior; serial correlation and small samples can mislead.

Common questions

What does this calculation include?

Uses arithmetic mean and sample standard deviation, equally spaced observations, and an effective annual risk-free rate. Square-root annualization assumes suitable return behavior; serial correlation and small samples can mislead.

Are the example inputs recommendations?

No. The defaults are worked examples. Enter values appropriate to your own calculation; outputs are estimates rather than forecasts.

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Explore supported daily stock rules, then review historical trades, drawdowns, and the report’s assumptions.

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Educational calculations, not a forecast or personalized investment advice. Your inputs are used locally for the calculation and are not submitted by this tool.

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