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Jensen's Alpha from CAPM and Actual Return Calculator

α = R_p − [R_f + β(R_m − R_f)] — excess return vs CAPM.

Calculates Jensen's alpha = R_portfolio − [R_f + β(R_m − R_f)]. Positive alpha indicates outperformance beyond what CAPM predicts given the portfolio's beta.

Marcus Laurent By Marcus Laurent
Published Last reviewed 1 min read

Inputs

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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

α = R_p − R_f − β·(R_m − R_f)

In depth

Calculates Jensen's alpha = R_portfolio − [R_f + β(R_m − R_f)]. Positive alpha indicates outperformance beyond what CAPM predicts given the portfolio's beta.