Company Marketcap

CAPM Calculator

Enter the CAPM inputs

%

Often the yield on a US Treasury bill or note matching your time horizon.

1 moves with the market; above 1 swings more, below 1 swings less.

%

Your assumption for a broad index over the same horizon.

Your results

Expected return on the stock

–

Market risk premium

–

Stock risk premium

–

Risk-free rate–
Beta–
Expected market return–
Expected return on the stock–

CAPM: expected return = risk-free rate + beta × (expected market return − risk-free rate). The result is only as good as the inputs: beta is estimated from past prices and the market return is an assumption.

Expected return at other betas

Points on the security market line for the same risk-free rate and market return.

BetaRisk premiumExpected return

Results are estimates for educational purposes and are not financial, tax or legal advice.

Work out the expected return on a stock from its beta, the risk-free rate and the expected market return using the capital asset pricing model, or solve for any one of the inputs. Next, open the pivot point calculator online and enter your own details to see an estimate in seconds.