Sharpe Ratio Calculator
Excess return per unit of volatility, the standard first question about any strategy's quality. Crypto's raw returns look heroic until Sharpe divides by their chaos.
Results (live)
Estimates only, not financial advice. All math runs in your browser; nothing you type leaves this page.
How it works
Sharpe = (return − risk-free rate) ÷ volatility
Worked example
40% return with 60% volatility against a 4.5% risk-free rate scores 0.59. A boring 12% strategy at 10% vol scores 0.75 and is, by this measure, the better machine.
FAQ
What is a good Sharpe ratio?
Above 1 is solid, above 2 is excellent and rare over long samples. Buy-and-hold BTC has historically landed near 1 across full cycles.
Where do I get my volatility number?
The standard deviation of your periodic returns, annualized (daily σ × √365). Portfolio trackers and spreadsheets both do it.
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Estimates only, not financial, tax or investment advice. Verify numbers against your exchange or a professional before acting.