Sortino Ratio Calculator
Measure Downside Risk Adjusted Investment Returns
The Sortino Ratio Calculator helps investors evaluate the risk adjusted performance of an investment by focusing only on downside volatility. Unlike the Sharpe ratio, the Sortino ratio considers only negative deviations from the expected return, providing a clearer picture of potential losses. By entering the investment’s expected return, the risk-free rate, and the downside deviation, this tool calculates the Sortino ratio. A higher ratio indicates a better return for the downside risk taken. Using this calculator, both novice and experienced investors can make informed decisions, select investments with favorable risk-reward profiles, and improve portfolio management strategies.
Sortino Ratio Calculator
Measure the downside risk-adjusted return of an investment.
Calculation Results
Sortino Ratio
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Calculation Breakdown
Benefits of Using Our
Sortino Ratio Calculator
Focus on Downside Risk
Measures returns in relation to negative volatility rather than total volatility.
Better Risk Assessment
Helps investors understand potential losses compared to Sharpe Ratio.
Portfolio Optimization
Identify investments that maximize returns while minimizing downside risk.
Beginner-Friendly Insights
Easy-to-read output makes understanding risk-adjusted returns simple.
Mobile Responsive
Works perfectly on mobile, tablet, and desktop devices.
Secure Calculations
All data is processed locally in your browser; no storage or sharing.
Frequently Asked Questions
What is a Sortino Ratio Calculator?
The Sortino Ratio measures risk-adjusted returns focusing only on downside volatility, giving a clearer picture of potential losses.
Why use Sortino Ratio instead of Sharpe Ratio?
Sortino Ratio penalizes only negative returns, making it more suitable for evaluating investments with asymmetric risk.
Can it compare multiple investments?
Yes, you can compare portfolios or assets to determine which has the best downside-adjusted performance.
Is it suitable for beginners?
Absolutely. The calculator is user-friendly and explains results clearly.
What inputs are needed?
You need the expected return of the investment and the standard deviation of negative returns (downside deviation).
Is my data secure?
Yes. All inputs remain on your device, and no data is transmitted or stored.