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Treynor Ratio Calculator

T = (R_p − R_f) / β_p — excess return per unit of systematic risk.

Compute the Treynor ratio of a portfolio — the excess return earned per unit of market beta: T = (R_p − R_f) / β_p. Higher is better. Use only for well-diversified portfolios.

Nadia Almasri By Nadia Almasri
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

T = (R_p − R_f) / β_p

In depth

Compute the Treynor ratio of a portfolio — the excess return earned per unit of market beta: T = (R_p − R_f) / β_p. Higher is better. Use only for well-diversified portfolios.