How to use this calculator
- Enter equal-period returns (%), per-period target return (%).
- Choose a display currency, then select Calculate. Results also update after a brief pause while you edit.
- Read the result with the assumptions below. Export details or save a second scenario to compare your choices.
Formula and method
Assumptions and limitations
Use your own matching-period observations. These descriptive calculations are not forecasts, investment advice or a national dataset. Lists accept up to 100 comma-separated numbers; do not enter thousands separators. Uses all observations in the downside denominator. No annualization. No downside observations means undefined.
Worked example
For the sample inputs shown above, historical sortino ratio produces a first result of approximately 0. The assumptions below explain what this result represents.
What the result means
Compare average return with downside deviations below your selected minimum acceptable return.
Common questions
How is the calculation performed?
Downside deviation = sqrt(mean(min(return−target,0)²)); Sortino = (mean(return)−target)/downside deviation.
What does the model leave out?
Use your own matching-period observations. These descriptive calculations are not forecasts, investment advice or a national dataset. Lists accept up to 100 comma-separated numbers; do not enter thousands separators. Uses all observations in the downside denominator. No annualization. No downside observations means undefined.
Methodology and transparency
Calculation specification reviewed on 2026-10-14. Mathematical implementation is tested against independent reference fixtures. This does not imply review by a licensed financial professional. Read the testing and precision policy.
Background reference: www.itl.nist.gov — financial method. FinanceMath implements its own calculator.