Jensen's Alpha is the classic measure of active portfolio management skill. It calculates the excess return of a portfolio above what CAPM predicts. Alpha > 0 means the manager created value; Alpha < 0 means they underperformed the benchmark. 💰 No signup · Client-side only
Jensen's Alpha Calculator is a free online financial tool that helps investors evaluate whether a portfolio generated excess returns beyond the market benchmark. All calculations run locally in your browser — your data is never uploaded to any server. Supports all major browsers and mobile devices. Jensen's Alpha, introduced by Michael Jensen in 1968, remains one of the most widely-used metrics for evaluating fund manager performance. Use this tool to quickly determine if active management is truly adding value.