Investment Beta Calculator
Estimate a share or portfolio's expected return using its beta against the market via the Capital Asset Pricing Model (CAPM).
Your results
Calculation breakdown
- CAPM
- risk-free rate + beta × (market return − risk-free rate)
Worked example
With a 4.5% risk-free rate, a beta of 1.2 and an expected market return of 8%, CAPM suggests an expected return of about 8.7% for the share.
Assumptions
- Beta must be sourced from a broker or data provider; it is not calculated here.
- CAPM is a theoretical model based on historical relationships, not a forecast guarantee.
- Assumes beta remains stable, which is rarely true over long periods.
How this calculator works
Using the Capital Asset Pricing Model, this calculator combines a risk-free rate, the share's beta and an expected market return to estimate the share's theoretical expected return. Beta measures how much a share's price tends to move relative to the overall market, with 1.0 meaning it moves in line with the market.
Frequently asked questions
Where can I find a share's beta?
Most broker platforms and financial data providers such as the ASX or major broking apps publish beta figures for listed shares.
What does a beta above 1 mean?
It means the share has historically been more volatile than the overall market, moving further in both rises and falls.
Is CAPM a guarantee of future returns?
No, it is a theoretical model based on historical relationships and assumptions; actual returns can differ significantly.
Results are estimates only and are not financial, tax, legal or credit advice.