Equity risk premium of Canada
The equity risk premium of Canada is 3.22% (as of 28 Oct 2026).
The breakdown
| Part | Value | Basis |
|---|---|---|
| Mature market premium | 3.2230% | Observed |
| Country default spread | 0.0000% | Published table |
| Volatility ratio | ||
| Country risk premium | 0.0000% | Published table |
| Total equity risk premium | 3.2230% | Our mature premium plus published table |
Observed means worked out from market or official data. Published table means taken from a public country risk table.
How each part was found
The table gives Canada a default spread of zero, so it has no country premium.
The total is our mature market premium plus the table's country premium.
The table changes only when its author publishes a new one. Its country premiums are measured from its own base, so totals for table countries can run slightly high.
Where Canada stands
How it is calculated
Total premium = mature market premium + country premium.
Use it in a cost of equity calculation
Cost of equity = risk-free rate + beta x equity risk premium. With made-up inputs of a 4.00% risk-free rate and a beta of 1.2, a company earning in Canada has a cost of equity of 4.00% + 1.2 x 3.22% = 7.86%.
The figures are in US dollar terms. For another currency, add the inflation difference between the two currencies.
Get it by API or MCP
GET /v1/economics/CAN/equity-risk-premium
{ "country": "CAN", "as_of": "2026-10-28",
"country_risk_premium": "0.0000", "total_erp": "3.2230",
"basis": { "total_erp": "table", ... } }
MCP: economics_get_equity_risk_premium { "country": "CAN" }Latest figure, history and every country, free with an API key.
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Common questions
What is the equity risk premium of Canada?
The equity risk premium of Canada is 3.22% (as of 28 Oct 2026), the extra return investors expect from shares over a risk-free government bond.
How is the country risk premium of Canada worked out?
The published table gives Canada a default spread of zero, so there is no country premium. The total equals the mature market premium of 3.22%.
Which equity risk premium should I use for Canada?
For a company whose cash flows are mostly earned in Canada, use 3.22%. For one earning in several countries, weight each country's premium by where its cash flows come from.
How often is it updated?
Every month. Each figure carries its date, and earlier dates stay in the history endpoint.