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CAPM Required Return on Equity Calculator

r = Rf + β(Rm − Rf) — minimum acceptable return.

Calculates the required return using CAPM: r = Rf + β(Rm − Rf). Identifies the equity risk premium, the systematic risk contribution, and whether a stock is overvalued vs its expected return.

Priya Venkatesan By Priya Venkatesan
Published Last reviewed 1 min read

Inputs

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Results

Enter values and click Calculate to see results.
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How to use this calculator

  1. Fill in the inputs above using the units you already have.
  2. Values update automatically as you type — no submit button needed.
  3. Hover any result row for the underlying formula and intermediate values.

Formula

r_e = Rf + β·(Rm − Rf)

In depth

Calculates the required return using CAPM: r = Rf + β(Rm − Rf). Identifies the equity risk premium, the systematic risk contribution, and whether a stock is overvalued vs its expected return.