Information Ratio Calculator

For anyone claiming to beat 'just hold BTC': active return divided by how wildly you deviated to get it. Consistent small outperformance scores better than lucky lurches.

Your annual return

Benchmark return (e.g. BTC)

Tracking error

Results (live)

Active return6%

Information ratio0.5

ReadingSkillful deviation

Estimates only, not financial advice. All math runs in your browser; nothing you type leaves this page.

How it works

IR = (portfolio return − benchmark return) ÷ tracking error

Worked example

Beating BTC by 6 points with a 12% tracking error is an IR of 0.5, genuinely decent. The same 6 points via 40% tracking error (0.15) is closer to noise.

FAQ

What is tracking error?

The standard deviation of your return minus the benchmark's, period by period. It measures how differently you behaved, win or lose.

What is a good IR?

Sustained 0.5+ is professional-grade; above 1 across years is elite. Most active crypto portfolios land below zero against BTC.

Related calculators

Position Size CalculatorSize from account risk and stop distance.Liquidation Price CalculatorWhere leverage ends the trade for you.Funding Rate CalculatorWhat holding a perp really costs.TP/SL CalculatorTake profit and stop levels from R multiples.

Estimates only, not financial, tax or investment advice. Verify numbers against your exchange or a professional before acting.