Size Premium Small-Cap Factor Return Calculator

Estimate the small-cap size premium from historical returns. Size premium = return of bottom market-cap decile minus top decile, risk-adjusted for market beta and other factors.

Principal ($)
Annual Rate (%)
Years
Compounding / Year
$ Finance Disclaimer: These calculators are for educational and illustrative purposes only. Results do not constitute financial advice. Consult a licensed financial advisor before making investment or borrowing decisions.
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How It Works

Estimate the small-cap size premium from historical returns. Size premium = return of bottom market-cap decile minus top decile, risk-adjusted for market beta and other factors

Each component has a specific meaning:

  • Historical returns — The historical returns recorded for the scenario being assessed.

Note: Interpret the size premium small cap result against the thresholds and context described above.

How to Use

Enter the historical returns for the scenario you are assessing. Estimate the small-cap size premium from historical returns. Size premium = return of bottom market-cap decile minus top decile, risk-adjusted for market beta and other factors. Use the size premium small cap result to inform your calculation.

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Frequently Asked Questions