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Business

Return on Equity Calculator

Compare net income with positive average shareholder equity.

Use a consistent reporting periodCheck the calculation below
Business dashboard
Business dashboard

Use figures from the same reporting period.

See the method

Enter your business figures

Runs on your device

Your key metric

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.

Input reference and sample values

Use the units and choices shown for each field. Sample values are provided for practice, not as recommendations.

InputFormat and unitsSample
Net incomeNumeric value. Unit: money.15000
Average equityNumeric value. Unit: money. Must be greater than zero.60000

Result for these sample inputs

25 %

Select Try the example in the form to load these values and calculate them again. This replaces the current form inputs. Compare the result with the method and worked explanation below.

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.

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