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Sortino Ratio Calculator
Result
Chart
Show formula & working
Sortino = (Rp − Target) ÷ Downside deviation, where downside deviation = √(mean of min(0, r − target)²), annualised
Details
Risk-free rate reference: 91-day Treasury Bill yield: rates and rules as of 28-Oct-2026 · Source: Reserve Bank of India — 91-day T-Bill cut-off yield at the last auction (RBI website, checked 31 Oct 2026). Every figure based on it stays editable.
How this works
Investors mind losses more than gains. Sortino replaces total volatility with downside deviation — only periods below the target return count.
The default target is the risk-free rate; change it to your own minimum acceptable return.
Frequently asked questions
Summary or series?
If you know the annual return and volatility (or beta), use summary figures. With monthly or yearly returns, the calculator works them out — annualised by the simple method (mean × periods a year, volatility × √periods).
Why can Sortino be much higher than Sharpe?
When most volatility is on the upside, downside deviation is small.