Business ToolsInvestment ToolsFree Tool
ROE Calculator
Calculate Return on Equity (ROE) — how efficiently a company turns shareholders' equity into profit — from net income and shareholders' equity.
How to Use ROE Calculator
- 1Enter net income for the period
- 2Enter shareholders' equity
- 3Click Calculate to see the ROE percentage
Frequently Asked Questions
ROE divides net income by shareholders' equity only. ROA (Return on Assets) divides net income by total assets, which includes both equity AND debt-funded assets — so a company with more debt will show a higher ROE than ROA for the same profit.
It varies by industry, but 15-20%+ is often cited as strong for established public companies. Very high ROE can sometimes signal heavy debt (leverage) rather than genuinely efficient equity use — check the debt-to-equity ratio alongside ROE.
It's a balance sheet line item: total assets minus total liabilities. Pull it from the company's latest balance sheet, not from this calculator.
Whatever figure you enter — many analysts use average equity over the period (opening + closing ÷ 2) for a more accurate ratio, since equity can change significantly during the year.
Related Tools
ROI Calculator
Calculate Return on Investment (ROI) percentage and net profit from your investment amount and return amount, using the standard ROI formula.
ROAS Calculator
Calculate Return on Ad Spend (ROAS) — the revenue generated per rupee of ad spend — from your ad revenue and ad spend.
ROA Calculator
Calculate Return on Assets (ROA) — how efficiently a company generates profit from its total assets — from net income and total assets.
ROCE Calculator
Calculate Return on Capital Employed (ROCE) — profit generated from all capital invested, both debt and equity — from EBIT and capital employed.