CAPM Calculator Excel Template
CAPM Calculator Excel Template
Interactive Excel Financial Model
Download, customize, and integrate into your own analysis
What's Included
- Interactive financial model with live Excel formulas
- All formulas visible and fully editable
- Professional formatting with color-coded inputs & outputs
- Formula reference sheet with variable definitions
- Step-by-step instructions sheet
- Compatible with Microsoft Excel 2016 and later
Download Template
Price range: $0.00 through $20.00
Calculate expected returns using the CAPM formula. Enter risk-free rate, beta, and market return for instant results with editable formulas.
Online Calculator vs Excel Template
| Feature | Online | Excel |
|---|---|---|
| Instant use — no download | ✓ | — |
| Works offline | — | ✓ |
| Customize formulas & layout | — | ✓ |
| Save & share with colleagues | — | ✓ |
| Integrate into your own models | — | ✓ |
| Print-ready formatting | — | ✓ |
About This Template
Calculate the expected return on any investment using the Capital Asset Pricing Model (CAPM) with this ready-to-use Excel template. Whether you are valuing stocks, setting hurdle rates, or building DCF models, this spreadsheet gives you instant CAPM calculations with fully transparent, editable formulas.
What You Can Calculate
This template computes three key outputs from the CAPM framework:
- Market Risk Premium (Rm - Rf) - The extra return investors expect for bearing equity market risk versus risk-free assets
- Asset Risk Premium - The specific risk premium for your investment, calculated as beta times the market premium
- Expected Return E(Ri) - The theoretical required return given the asset's systematic risk level
Required Inputs
You need three inputs to run the model:
- Risk-Free Rate (Rf) - Typically the 10-year Treasury yield, currently around 4-5%
- Beta - The asset's systematic risk measure, available on Yahoo Finance, Bloomberg, or similar sites
- Expected Market Return (Rm) - Historical S&P 500 average is approximately 10% annually
Methodology
The template implements the classic CAPM formula: E(Ri) = Rf + Beta x (Rm - Rf). This single-factor model prices only systematic (market) risk, assuming unsystematic risk can be diversified away. Results update instantly as you change inputs.
Assumptions
CAPM assumes efficient markets, rational investors, and constant beta over the investment horizon. The model ignores taxes, transaction costs, and factors beyond market risk. Consider supplementing with multi-factor models for more robust analysis.
Frequently Asked Questions
Yes. Duplicate the Calculator sheet for each stock, enter different beta values, and compare expected returns side-by-side. You can also create a data table varying beta from 0 to 2 to visualize how systematic risk affects required returns.
Use the Expected Return output as your cost of equity input in a DCF model. Enter the company's beta, current Treasury yield as the risk-free rate, and your expected market return (typically 8-12%). The resulting E(Ri) is the discount rate for equity cash flows.
This template calculates the expected return for an investment using the Capital Asset Pricing Model (CAPM). It's commonly used for determining cost of equity in DCF valuations, setting hurdle rates for capital budgeting, and evaluating whether investments offer adequate compensation for their systematic risk.
A fully interactive financial model with live Excel formulas, an Instructions sheet with usage guide, and a Formula Reference sheet with variable definitions and model assumptions. All formulas are visible and editable.
Microsoft Excel 2016 or later. The template uses standard Excel formulas only — no macros, VBA, or add-ins required.
Yes. All cells are fully editable. You can modify any formula, add your own calculations, change formatting, or integrate the model into your existing spreadsheets.
The online calculator runs in your browser for quick calculations. This Excel template gives you a portable, offline financial model you can customize, save, share with colleagues, and integrate into your own analysis.
This template is provided for educational and personal use. You may use it in your own professional analysis and presentations. Redistribution or resale of the template itself is not permitted.
You can re-download the latest version from your account or by requesting a new download link. Free downloads are limited to 5 per email address per month.
