α Jensen's Alpha Calculator

Risk-adjusted excess performance

How to Use This Calculator

1

Enter Returns

Portfolio, risk-free, and benchmark returns.

2

Enter Beta

Portfolio beta vs benchmark.

Formula

α = R_p − [R_f + β(R_m − R_f)]

Frequently Asked Questions

What does alpha mean?

Performance above what CAPM predicts, given market risk.

Annualized?

Use consistent periodicity across all inputs.