Information Ratio Calculator
Calculate the information ratio: (Portfolio return - Benchmark return) / Tracking error. Measure active management skill.
Use the Information Ratio Calculator
Enter portfolio return, benchmark return, and tracking error (all in %). Information ratio is calculated.
Inputs
Portfolio return, benchmark return, tracking error. All in %.
Results
Information ratio
1.000
IR = (Portfolio - Benchmark) / Tracking error.
How this calculator works
IR = (Portfolio return - Benchmark return) / Tracking error. All inputs in percent.
How to interpret your results
IR above 0.5 is often considered good; above 1.0 is strong. Compare across managers or strategies.
FAQs
What is the information ratio?▾
Excess return over the benchmark per unit of tracking error. Higher IR means better risk-adjusted active performance.
Which inputs do I need?▾
Portfolio return (%), benchmark return (%), and tracking error (%). All typically annualised.
When would I use this?▾
To evaluate fund managers or active strategies; to compare alpha relative to active risk.
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