Sortino Ratio & Downside Deviation Calculator

Calculate the Sortino ratio using downside deviation (semi-deviation below the minimum acceptable return). Measure downside risk separately from upside volatility for strategies with asymmetric return distributions.

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

Calculate the Sortino ratio using downside deviation (semi-deviation below the minimum acceptable return). Measure downside risk separately from upside volatility for strategies with asymmetric return distributions

Each component has a specific meaning:

  • Downside deviation — The downside deviation recorded for the scenario being assessed.

Note: Interpret the sortino ratio result against the thresholds and context described above.

How to Use

Enter the downside deviation for the scenario you are assessing. Calculate the Sortino ratio using downside deviation (semi-deviation below the minimum acceptable return). Measure downside risk separately from upside volatility for strategies with asymmetric return distributions. Use the sortino ratio result to inform your calculation.

Frequently Asked Questions