Sortino Ratio Calculator
Risk-adjusted return using downside deviation: Sortino = (Portfolio return − Target return) / Downside deviation.
Use the Sortino Ratio Calculator
Enter portfolio return, target return, and downside deviation (all %). Sortino ratio is calculated.
Inputs
Portfolio return, target (min acceptable) return, and downside deviation (all %).
Results
Sortino ratio
1.250
Sortino = (Portfolio return − Target return) / Downside deviation. Uses only downside volatility.
How this calculator works
Sortino = (Return − Target return) / Downside deviation. Use annual figures.
How to interpret your results
Higher Sortino is better. Sortino > 1 is good; negative means return below target.
FAQs
What is the Sortino ratio?▾
Risk-adjusted return that only penalizes downside volatility, unlike Sharpe which uses total volatility.
What is downside deviation?▾
Standard deviation of returns that fall below the target or minimum acceptable return.
When would I use Sortino vs Sharpe?▾
Sortino is preferred when you care more about downside risk than upside volatility.
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