# Calmar Ratio

Return earned per unit of maximum drawdown pain.

Source data: AMFI daily NAV (17,900+ schemes) + Nifty benchmark indices. Last updated: 2026-07-02. Interactive tool: https://mfpro.tigzig.com

## What is the Calmar Ratio?



Calmar Ratio = CAGR / |Max Drawdown|. It tells you how much return you get per unit of
 maximum pain. Higher is better. A Calmar of 1.0 means the annualized return equals the
 max drawdown - you earned back exactly what you could have lost.

 


## Formula


 
 Calmar = CAGR / |Max Drawdown|
 

Only computed for periods ≥ 1Y (where CAGR is meaningful). We show it alongside
 the CAGR and Max DD columns for 1Y, 3Y, 5Y, and 10Y periods.

 


## Worked Example



Calmar over 3 years


CAGR: 18.5%


Max Drawdown: −12.3%


Calmar = 18.5 / 12.3 = **1.50**


For every 1% of maximum pain, you earned 1.5% annual return. Solid risk-adjusted
 performance.

 
 


## How to Interpret





- Calmar > 1.5: Strong risk-adjusted returns

- Calmar 0.5 to 1.5: Reasonable

- Calmar < 0.5: The drawdown pain is large relative to returns

## Related metrics

More Returns methodology from the MFPRO analytics tool:

- [CAGR (Compound Annual Growth Rate)](/mfpro/cagr-returns)

- [Rolling Returns](/mfpro/rolling-returns)

- [Standard Deviation (Volatility)](/mfpro/standard-deviation)

- [Maximum Drawdown](/mfpro/maximum-drawdown)

- [Beat Rate](/mfpro/beat-rate)

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Source: https://www.tigzig.com/mfpro/calmar-ratio