Sharpe Ratio is the average return earned in excess of the risk-free rate per unit. If you need to know how to calculate sharpe ratio, then here is the Sharpe ratio formula to calculate the sharpe ratio for an investment and taking into account its investment risks. It can be calculated by just finding the difference between the expected portfolio return and the risk-free rate and dividing the resultant value by the portfolio standard deviation.
The above Sharpe ratio formula can be used to measure the excess return per unit of deviation in an investment. All the inputs to be substituted in the formula should be a percentage value.