Equity risk premium of the United States
The equity risk premium of the United States is 3.22% (as of 28 Oct 2026).
The breakdown
| Part | Value | Basis |
|---|---|---|
| Mature market premium | 3.2230% | Observed |
| Country default spread | 0.0000% | Zero by definition (the mature market) |
| Volatility ratio | ||
| Country risk premium | 0.0000% | Zero by definition (the mature market) |
| Total equity risk premium | 3.2230% | Observed |
Observed means worked out from market or official data.
How each part was found
The United States is the mature market, so its country premium is zero by definition. Every other country's total is this mature market premium plus a country premium.
Where the United States stands
The United States is joint 165th of 175 countries by equity risk premium, counted from the highest.
Every other country's total starts from this figure. Across the other 174 countries the median total is 7.12%, and the highest is 29.88% (Venezuela).
The closest countries by total are Australia (3.22%), Canada (3.22%) and Denmark (3.22%).
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 the United States 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/USA/equity-risk-premium
{ "country": "USA", "as_of": "2026-10-28",
"country_risk_premium": "0.0000", "total_erp": "3.2230",
"basis": { "total_erp": "observed", ... } }
MCP: economics_get_equity_risk_premium { "country": "USA" }Latest figure, history and every country, free with an API key.
Get a free API keyCountries with a similar premium
Common questions
What is the equity risk premium of the United States?
The equity risk premium of the United States 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 the United States worked out?
The United States is the mature market, so it has no country premium. The total equals the mature market premium of 3.22%.
Which equity risk premium should I use for the United States?
For a company whose cash flows are mostly earned in the United States, 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.