Sharpe Annualized
Calculate Sharpe Annualized instantly with the exact formula and a worked example.
Sharpe Annualized
Average return per period%
Standard deviation per period%
Annual risk-free rate%
Periods per year (252 days, 52 weeks, 12 months)
Annualized Sharpe ratio
0.793725
Per-period Sharpe
0.05
Annual return (≈)
12.6%
Annualized volatility
15.87%
Assessment
Weak result
More about: Sharpe Annualized
What it calculates
The “Sharpe Annualized” calculator computes Annualized Sharpe ratio from 4 parameters: average return per period (%), standard deviation per period (%), annual risk-free rate (%), periods per year (252 days, 52 weeks, 12 months).
Used by investors to estimate returns, project savings, and analyze a portfolio.
Example calculation
With parameters Average return per period = 0.05 %, Standard deviation per period = 1 %, Annual risk-free rate = 0 %, Periods per year (252 days, 52 weeks, 12 months) = 252 the result is 0.7937.
How to use
- Enter average return per period, standard deviation per period, annual risk-free rate and periods per year (252 days, 52 weeks, 12 months) — each field above is adjustable with a slider.
- Annualized Sharpe ratio is calculated automatically as you type.
- Check the worked example below to see the formula applied to real numbers.
- 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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