CAPM expected return calculator

Return implied by market risk.

Built and reviewed by Dovanic, Founder and editor, FreeByteLast reviewed: 2026-08-18

Risk-free rate

Beta

Market risk premium

Expected return

10.00%

Risk premium earned

6.00%

With these inputs, expected return comes to 10.00%. Risk premium earned works out to 6.00%. The result assumes risk-free rate stays at 4%.

What moves the number · Expected return

Input	−10%	Now	+10%
Risk-free rate	9.60%	10.00%	10.40%
Beta	9.40%	10.00%	10.60%
Market risk premium	9.40%	10.00%	10.60%

Whatmakesequal

Save this set of inputs, change something, then save again to compare the outcomes side by side.

Return implied by market risk.

With the defaults above, expected return works out at 10.00%.