📈 Treynor Ratio Calculator
Measure risk-adjusted performance relative to market (systematic) risk using the Treynor Ratio.
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What is the Treynor Ratio?
The Treynor Ratio measures risk-adjusted return relative to systematic (market) risk only, using beta instead of total standard deviation, making it well-suited for evaluating diversified portfolios.
The formula
Treynor Ratio = (Portfolio Return − Risk-Free Rate) / Beta. A higher Treynor Ratio indicates better returns earned per unit of market risk taken, useful for comparing portfolios that are already well diversified (where unsystematic risk is minimal).
This calculator is for general investment-analysis education, not investment advice.
Last reviewed August 2026