How to use this calculator
- Enter portfolio return (%), risk-free return (%), positive portfolio beta.
- 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
Treynor = (portfolio return − risk-free return) / beta.
Assumptions and limitations
Use matching periods. This interpretation requires positive beta and is unreliable when beta is near zero.
Worked example
With portfolio return (%) = 10, risk-free return (%) = 2, positive portfolio beta = 1.2, excess return per unit beta is approximately 6.6666667.
What the result means
The result is in percentage points per beta unit, not a guaranteed return.
Common questions
How should I interpret excess return per unit beta?
The result is in percentage points per beta unit, not a guaranteed return.
What should I check before using this result?
Use matching periods. This interpretation requires positive beta and is unreliable when beta is near zero.
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.