Tradelyser Logo
PERFORMANCE

Sharpe Ratio Calculator

Calculate Sharpe Ratio and Sortino Ratio from your trading returns. Measure whether your strategy earns enough return for the risk you're taking.

Sharpe & Sortino Ratio Calculator

Paste your monthly/daily/weekly returns (% values) separated by commas, spaces, or new lines.

20 data points loaded

Sharpe Ratio

1.43

Good

Sortino Ratio

2.94

Excellent

Annualised Return

23.29%

Avg period: 1.76%

Max Drawdown

3.10%

Volatility: 10.19%

Interpretation Guide

Sharpe Ratio Benchmark

> 2.0Excellent — institutional quality
1.0 – 2.0Good — acceptable for traders
0.5 – 1.0Average — needs improvement
< 0.5Poor — not worth the risk

Your Metrics

Data Points20
Std Deviation (period)2.94%
Downside Dev (period)1.43%
Risk-Free (period)0.54%
Excess Return (period)1.22%

HOW IT WORKS

Simple steps to get your result

1

Paste Your Returns

Enter your monthly/daily/weekly return % values, comma-separated or one per line.

2

Set Risk-Free Rate

Use the current RBI repo rate or 91-day T-bill yield (around 6.5%).

3

Get Risk-Adjusted Metrics

See Sharpe Ratio, Sortino Ratio, annualised return, max drawdown, and interpretation.

FAQ

Frequently asked questions

What is the Sharpe Ratio?+

Sharpe Ratio = (Average Return − Risk-Free Rate) / Standard Deviation × √Periods. It measures how much excess return you earn per unit of total risk. Higher is better.

What is the Sortino Ratio?+

Sortino Ratio only penalises downside volatility (negative returns), not upside volatility. It is a more fair measure for strategies that have high upside variance. A Sortino > 2 is excellent.

How is Sharpe different for traders vs investors?+

Investors benchmark against Nifty or FD returns. Traders compare strategies against each other. A trading strategy with Sharpe > 1.5 is considered good in quantitative trading.

Why does data quantity matter?+

Sharpe Ratio calculated from fewer than 12 data points is unreliable due to small sample bias. Use at least 2 years of monthly data (24+ points) for meaningful results.

Track Your Trades Automatically with TradeLyser

Stop calculating manually. TradeLyser auto-syncs your broker trades, tracks P&L, and gives you AI-powered insights — all in one place.