Estimate required return from a risk-free rate, beta, and expected market return.
It makes the prices, cash flows, rates, time periods, weights, and model conventions explicit so you can inspect an entered scenario without hidden live-market assumptions.
Capital and cash flowstime and rate→entered modelScenario resultChanging one assumption changes the model—not the marketRequired return = risk-free rate + beta × (market return − risk-free rate).
Read the estimate correctly
Use the result within its boundaries
With a 3% risk-free rate, beta 1.2, and 8% market return, CAPM gives 9%.
CAPM is a simplified model. Beta and expected returns are estimates, and the result is not a prediction or recommendation.
Quick guide
How to use this calculator
Enter only the market, accounting, cash-flow, rate, or timing assumptions named by the fields.
Keep currencies, periods, per-share values, and percentage conventions consistent.
Review the formula and limitations before interpreting or comparing the result.
Fixed decimals accept up to 30 digits and 12 decimal places and are capped at an absolute value of 1e12 per input. Rates are capped at 1000%; narrower domains are validated by the formula.
International scope
No currency, exchange, live security price, accounting standard, tax jurisdiction, market convention, settlement rule, or regulatory disclosure is selected automatically.
Decision boundary
Results are calculations from visitor-entered assumptions, not market data, forecasts, financial advice, suitability assessments, fair-value opinions, or recommendations.
Calculator-specific assumptions
CAPM is a simplified model. Beta and expected returns are estimates, and the result is not a prediction or recommendation.
