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Capital Asset Pricing Model (CAPM) Calculator

Use the Capital Asset Price Model (CAPM) calculator to compute the expected return of a security based on its risk level.

Form Input

Enter risk free return, market return and beta.

On the calculator form, enter only numbers (with or without decimal points).

Do not enter currency symbols like dollar signs, commas or percent signs.


CAPM Calculator
Risk Free Return:
   %
Market Return:
    %
Beta:
Expected Return
    %
   


Computational Notes:

The expected return is computed using the following formula:

     ER = r + B * (mr - r)

Where:

ER = Expected Return

r = Risk Free Rate / 100

mr = Market Return /100

B = Beta


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