ClarityKitFind a tool
Business

Return on Equity Calculator

Compare net income with positive average shareholder equity.

Use a consistent reporting periodCheck the calculation below

Your business figures

Runs on your device

METRIC SNAPSHOT

Your result

Let’s calculate.

Use the Calculate button to see your result.

Review the method below for assumptions and conventions.

How to use this tool

  1. Enter net income, average equity.
  2. Select Calculate to view the result.
  3. Check the method and assumptions below before using the result.

The method, explained

ROE = net income/average equity × 100%.

A WORKED EXAMPLE

Using net income = 15000 money, average equity = 60000 money, the result is 25 %. Change these example inputs to match your task; use the method above to check each step.

What to keep in mind

Use consistent currencies, reporting periods and accounting definitions. This arithmetic estimate excludes items not entered in the form.

Common questions

Which inputs does this calculation need?

Compare net income with positive average shareholder equity. Enter net income in money, average equity in money. The filled example is editable and is not a saved personal record.

How should I interpret the result?

Use consistent currencies, reporting periods and accounting definitions. This arithmetic estimate excludes items not entered in the form.

Methodology maintained by ClarityKit. How these tools are built and checked.