Treynor Ratio Calculator

About this calculator

This calculator computes the Treynor ratio: (Rp − Rf) / β, the portfolio's return above the risk-free rate divided by its beta — a measure of systematic (market) risk rather than total volatility, unlike the Sharpe ratio which divides by standard deviation.

Portfolio managers and investment analysts use it to compare how efficiently different well-diversified portfolios convert market risk into excess return, since beta assumes unsystematic risk has already been diversified away. Enter the portfolio return, risk-free rate, and beta to get the Treynor ratio.