Sortino Ratio Calculator

Written by Great Medico

Updated September 25, 2026 •2 min read

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A result from Sortino Ratio Calculator becomes more meaningful when the source numbers and formula stay visible. That makes it easier to reproduce the calculation instead of relying on an unexplained figure.

What this calculator does

Sortino Ratio Calculator measures excess return above the risk-free rate per unit of downside deviation rather than total volatility. It works from portfolio return, risk-free rate, and downside deviation. For Sortino Ratio Calculator, because no outside market data is inserted, the result stays tied to the exact assumptions visible on the page.

How to use it

Use the form to supply Portfolio return, Risk-free rate, and Downside deviation. For Sortino Ratio Calculator, enter percentage or rate fields on the scale displayed by the form rather than converting them to an unstated format. Before calculating, recheck Portfolio return, Risk-free rate, Downside deviation against the source numbers you intend to analyze.

How the calculation works

Sortino ratio = (portfolio return − risk-free rate) ÷ downside deviation. The Sortino Ratio Calculator result follows the stated equation and the form values relevant to that calculation. For Sortino Ratio Calculator, the result is only meaningful for the exact values supplied, so input errors should be corrected before interpretation.

Example

A 10% portfolio return, 3% risk-free rate, and 8% downside deviation give a Sortino ratio of 0.875. The Sortino Ratio Calculator example is a math check only; your result should come from the values entered on the form.

How to interpret the result

Because only downside deviation is used in the denominator, the ratio does not penalize upside variability the way Sharpe does. When comparing Sortino Ratio Calculator results, change assumptions deliberately so you can see which displayed input caused the difference.

Limitations and notes

The result depends on how downside deviation was calculated before it was entered. Different target returns, sampling periods, or data frequencies can produce non-comparable Sortino ratios. The Sortino Ratio Calculator output should be revisited when the assumptions behind its displayed inputs are no longer representative.