CAPM Calculator
Estimate cost of equity from your risk-free rate, beta and expected market return or market risk premium.
Use rates for the same currency and period. Market premium equals expected market return minus the risk-free rate; do not enter total market return as a direct premium. Negative beta, rates and premium are mathematically allowed. This single-factor model estimates cost of equity from systematic market risk; it is not a price forecast or a guaranteed return.
All inputs are entered manually and stay in this browser. No market data is fetched.
Conceptual references: Damodaran · DCF · Damodaran · WACC / CAPM
A QUICK WALKTHROUGH
How to use this tool
- Estimate cost of equity from your risk-free rate, beta and expected market return or market risk premium.
- Use rates for the same currency and period. Market premium equals expected market return minus the risk-free rate; do not enter total market return as a direct premium. Negative beta, rates and premium are mathematically allowed. This single-factor model estimates cost of equity from systematic market risk; it is not a price forecast or a guaranteed return.
- Calculate
Formula
MRP (%) = Rm − Rf; Ke (%) = Rf + β × MRP.
Assumptions and limits
Use rates for the same currency and period. Market premium equals expected market return minus the risk-free rate; do not enter total market return as a direct premium. Negative beta, rates and premium are mathematically allowed. This single-factor model estimates cost of equity from systematic market risk; it is not a price forecast or a guaranteed return.
Local processing
All inputs are entered manually and stay in this browser. No market data is fetched.
GOOD TO KNOW
Common questions
Does this predict actual returns?
No. This is a model estimate using your own assumptions, not a forecast or investment recommendation.