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Burke Ratio

Calculate Burke Ratio instantly with the exact formula and a worked example.

Burke Ratio

Return for the period%
Risk-free rate%
Drawdown 1%
Drawdown 2%
Drawdown 3%
Drawdown 4%
Drawdown 5%
Burke Ratio
0.800132
Calculate Burke Ratio instantly with the exact formula and a worked example.
√(Σ drawdowns²)
13.75%
Drawdowns counted
3
Modified Burke (÷ √N)
1.386

More about: Burke Ratio

What it calculates

The “Burke Ratio” calculator computes Burke Ratio from 7 parameters: return for the period (%), risk-free rate (%), drawdown 1 (%), drawdown 2 (%), drawdown 3 (%), drawdown 4 (%), drawdown 5 (%).

Used by investors to estimate returns, project savings, and analyze a portfolio.

Example calculation

With parameters Return for the period = 15 %, Risk-free rate = 4 %, Drawdown 1 = 10 %, Drawdown 2 = 5 %, Drawdown 3 = 8 %, Drawdown 4 = 0 %, Drawdown 5 = 0 % the result is 0.8001.

How to use

  1. Enter return for the period, risk-free rate, drawdown 1, drawdown 2, drawdown 3, drawdown 4 and drawdown 5 — each field above is adjustable with a slider.
  2. Burke Ratio is calculated automatically as you type.
  3. Check the worked example below to see the formula applied to real numbers.
  4. Copy the result or bookmark this calculator.

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FAQ

What is compound interest?
Compound interest means you earn returns not only on your original principal but also on previously earned interest. Formula: A = P · (1 + r/n)^(n·t). Over long periods this produces exponential growth.
How much do regular contributions matter?
A lot. Adding a fixed amount every month and reinvesting earnings dramatically increases the final value, especially over 20–30 years, because each contribution compounds for the remaining term.
What is the Rule of 72?
A quick estimate for doubling time: years ≈ 72 / annual return %. At 8% your money doubles in about 9 years; at 12%, in about 6 years.
What return rate should I assume?
Historically the S&P 500 has returned about 10% per year before inflation (around 7% after). Use a conservative figure for planning and remember that past performance does not guarantee future results.

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