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Information Ratio from Active Return and Tracking Error Calculator

IR = Active return / Tracking error.

Calculates Information Ratio = (Portfolio return − Benchmark return) / Tracking error (annualised standard deviation of active returns). IR > 0.5 is considered good.

Daniel Oh By Daniel Oh
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

IR = (R_p − R_b) / TE

In depth

Calculates Information Ratio = (Portfolio return − Benchmark return) / Tracking error (annualised standard deviation of active returns). IR > 0.5 is considered good.