CAPM Calculator

Investing can feel confusing, especially when you are trying to figure out how much return you should get. But what if you have a tool that tells you exactly what your expected return should be? That is what the Capital Asset Pricing Model CAPM calculator​ does for you. It gives you the real picture behind the numbers, so you are never investing in the dark.

This Cost of equity capital calculator​ helps you determine the expected return on an investment based on its risk. It uses the Capital Asset Pricing Model, a simple formula used by investors and financial planners across the world. You do not have to learn the formula by heart, as our tool will do everything for you.

The CAPM model calculator​ takes three basic inputs:

• Rf: The Risk-Free Interest Rate (usually the return from a safe asset)
• E(Rm): The Expected Market Return (how much the market is expected to grow)
• Βi: The Beta (which shows how much risk the asset carries compared to the market)

This means it uses the exact CAPM formula: E(Ri) = Rf + [ E(Rm) − Rf ] × βi

Or I say, Expected Return = Risk-Free Rate + (Market Return − Risk-Free Rate) × Beta

Once you enter these values, our calculator instantly shows you two important things:

• Your Expected Rate of Return
• The Risk Premium (how much extra return you should get for taking a risk)

It basically helps you answer one simple question: Is this investment worth the risk I am taking?

1. Set the Risk-Free Interest Rate (%)
2. Enter the Broad Market Return (%)
3. Then, select the Beta
4. Finally, click the ‘Calculate’ Button and see a visual chart right in front of you explaining complex investment math in simple, clear steps.

• From Numbers to Clarity

Even if you have never heard of beta or risk-free rate, our capital asset pricing model CAPM calculator explains it without the jargon. You do not have to figure out anything on your own. The tool splits your return into the basic building blocks. Blue shows safe return, and Pink shows risky return to help you see exactly where your profit comes from. 

• One Tool but Many Uses

This is not just a CAPM model calculator; it is your shortcut to smarter investment planning. Whether you want to estimate the cost of equity, compare investments, or understand market behavior, it does the job. You save time, you save effort, and you get more confident in your choices. 

• Power in Simplicity

You do not need a spreadsheet or a finance degree to use this tool. Three numbers are enough: risk-free rate, market return, and beta. The cost of equity capital calculator will do the rest. And yes, it is built for everyone, not just for finance experts. 

• Spot Risk That Looks Safe

Not all low-risk investments are truly safe. Some just look stable on the outside. The CAPM calculator helps you uncover hidden risk by comparing it with real market expectations. So, you avoid falling into the trap of trusting numbers that do not tell the full story.

• Make Confident No’s

Saying yes is easy; saying no takes proof. This Capital asset pricing model CAPM ​calculator helps you say no to bad deals without second-guessing yourself. When the expected return does not match the risk, you see it clearly. And that means you can walk away with confidence, not confusion.

• Think Like an Analyst

You do not need to work on Wall Street to think smart. The capital asset pricing model calculator trains your brain to look at investments the way pros do. As time goes on, your choices get keener, quicker, and more rational without even knowing it.