Treynor Ratio Formula: Treynor Ratio = (actual return - risk-free return) / beta
Treynor Ratio Definition Our free online Treynor Ratio Calculator is an absolutely quick and absolutely easy way to calculate the Treynor Ratio online. Enter in the actual return of the portfolio, the risk free return, and the beta of the portfolio and then click the button. The Treynor Ratio was named for Jack L. Treynor and is commonly used by financial professionals to measure the returns that are earned over and above the returns that could be earned on a portfolio without any diversification risk. The Treynor Ratio Calculator is a great financial calculator to be used along side of and in conjunction with our Sharpe Ratio Calculator. Give them both a try right now and you will be calculating Treynor Ratio and Sharpe Ratio in no time!
How to Calculate Treynor Ratio Let's be honest - sometimes the best treynor ratio calculator is the one that is easy to use and doesn't require us to even know what the treynor ratio formula is in the first place! But if you want to know the exact formula for calculating treynor ratio then please check out the "Formula" box above.