Free Online Calculators » Capital Asset Pricing Model (CAPM)

The capital asset pricing model (CAPM) is used to determine a theoretically appropriate required rate of return of an asset.

Initial Data

Risk-free interest rate (rf)
Investment's Beta (βi)
Expected annual return of the market benchmark (E(rm))


Expected annual return on investment (E(ri))

$$E(r_{i}) = r_{f} + \beta_{i} \times \left[E(r_{m}) - r_{f}\right]$$

Notice! Savings and investments are always related with risk (uncertainty) that returns vary. The result of the calculator can not in any event be interpreted as investment recommendation or advice. The actual return of the investment is affected by costs, charges and taxation, which are not taken into account in the calculation. On the basis of the calculation, one can not reliably predict the future value or return of the investment.