Updated: 2026-02-20
Calculate Sharpe ratio from annual return, risk-free rate, and volatility to benchmark risk-adjusted performance. The calculator is free and intentionally simple so you can plan trades quickly without skipping risk logic.
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Calculate Sharpe ratio from annual return, risk-free rate, and volatility to benchmark risk-adjusted performance.
Note
Outputs are only as accurate as your inputs.
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$ sharpe-ratio
0.35 Sharpe
Enter your inputs before you place the trade, not after. Pre-trade planning is where calculators create value.
Use realistic values based on your actual execution conditions. If you understate slippage, fees, or stop distance, output quality collapses.
Document the result inside your journal so you can compare planned vs realized outcomes during review.
Sharpe ratio estimates risk-adjusted return: how much excess return you earn per unit of volatility.
Use it to compare systems on the same time basis (annualized). It hides path risk, so pair it with drawdown metrics.
Most preventable losses come from skipping one simple calculation when markets move fast. This tool enforces the minimum math needed for disciplined execution.
The value compounds when used consistently. One correct risk decision rarely changes a year; repeated correct decisions usually do.
Tie calculator output to your strategy tags so you can evaluate whether your planning assumptions match live performance.
Use this tool at planning time, then compare outcome quality in weekly review sessions.
If planned and realized values diverge, investigate execution behavior before adjusting strategy logic.
Pair this with one behavior correction each week for compounding improvement.
Using unrealistic inputs because they feel better emotionally.
Changing parameters mid-trade to justify staying in a bad position.
Treating one output as a signal to trade rather than a risk filter.
Yes. The calculator is free and available without signup.
Sharpe ratio measures return per unit of volatility: (return − risk-free rate) divided by volatility. It is useful for comparing risk-adjusted performance across strategies or portfolios.
It depends on the market and timeframe. Higher is generally better, but the key is consistency and comparable measurement windows. Avoid comparing Sharpe across different sampling methods or uneven data.
Outputs are only as accurate as inputs. Use realistic assumptions and review planned vs realized values weekly.
Yes. You can pair tool outputs with your review workflow and setup tags for better post-trade diagnostics.
See plans and run one weekly review loop with Tiltless: edges, leaks, and enforceable next actions.
