Jensen's Alpha Calculator
CAPM-expected return versus delivered return — the alpha that survives after charging the fund for its beta.
Formula
A fund beating the index isn't skill if it simply ran beta 1.3 in a bull market — alpha charges for that ride first. SPIVA reports show 80-90% of active funds deliver negative alpha after fees over 10+ years; demand to see alpha, not raw returns.
Not financial advice — for informational and analytical use only. Verify all figures with a qualified professional before acting on them.
Need jensen's alpha calculator results fast? Analysts, founders, traders and finance professionals use the Jensen's Alpha Calculator to skip the spreadsheet and get a defensible answer in one step — free, private and instant.
About Jensen's Alpha Calculator
CAPM-expected return versus delivered return — the alpha that survives after charging the fund for its beta. A fund beating the index isn't skill if it simply ran beta 1.3 in a bull market — alpha charges for that ride first. SPIVA reports show 80-90% of active funds deliver negative alpha after fees over 10+ years; demand to see alpha, not raw returns. The governing relationship is α = R_p − [R_f + β(R_m − R_f)]. The Jensen's Alpha Calculator computes entirely in your browser — free, private (your figures never leave your device) and instant, recalculating live as you change any input.
How to use Jensen's Alpha Calculator
- 1Enter Fund return (% p.a.), Risk-free rate (%), Fund beta, Benchmark return (%) into the Jensen's Alpha Calculator.
- 2The result is computed automatically using α = R_p − [R_f + β(R_m − R_f)] — there is no button to press.
- 3Change any input to model a different scenario, then copy or share the result.
Why use Jensen's Alpha Calculator?
- ✓Computes jensen's alpha calculator instantly with the correct formula — no spreadsheet needed
- ✓100% free and unlimited, with no sign-up, login or paywall
- ✓Runs entirely in your browser, so the figures you enter stay private
- ✓Shows the formula, a live worked example and references so you can defend the number
Frequently asked questions
What is the formula behind the Jensen's Alpha Calculator?+
Jensen's Alpha Calculator uses α = R_p − [R_f + β(R_m − R_f)]. A fund beating the index isn't skill if it simply ran beta 1. The tool substitutes your actual inputs into this relationship and shows the worked example step by step.
What inputs does the Jensen's Alpha Calculator need?+
Enter Fund return (% p.a.), Risk-free rate (%), Fund beta, Benchmark return (%) and the result updates immediately — there is no button to press. Change any value to model a different scenario in real time.
Is the Jensen's Alpha Calculator free, and is my data private?+
Yes — it is completely free with no sign-up or usage limit, and it runs entirely in your browser, so the numbers you enter are never uploaded or stored on any server. It is for informational and analytical use, not financial advice.
What should I watch out for when using the Jensen's Alpha Calculator?+
3 in a bull market — alpha charges for that ride first. SPIVA reports show 80-90% of active funds deliver negative alpha after fees over 10+ years; demand to see alpha, not raw returns.
What is the Jensen's Alpha Calculator based on?+
The method follows authoritative sources: Jensen (1968); S&P SPIVA scorecards. The formula and references are shown on the page so you can verify and cite the result.
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