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Use our free alpha calculator to measure Jensen's Alpha - the excess return of a portfolio over its expected return based on CAPM. A positive alpha indicates outperformance relative to risk taken.
Jensen's Alpha measures the excess return of a portfolio relative to its expected return based on the Capital Asset Pricing Model (CAPM). It tells you whether your portfolio manager or strategy is adding value above what is expected for the risk taken.
α = Portfolio Return - [Rf + β × (Rm - Rf)]Percentage: The percentage value you want to apply
Number: The original number or value
Result: The calculated result
Result: 3.60%
CalculateMe Team
Last updated: 2026-07-16