Return on equity
Return on equity: use net income, average shareholder equity. Review the formula, worked example and calculation steps.
Inputs
Use the units shown—
Enter your values and select Calculate.
Formula & explanation
ROE = net income/average equity ×100
Variables & units
- Net income
- currency · minimum -1000000000000, maximum 1000000000000
- Average shareholder equity
- currency · minimum 0.000001, maximum 1000000000000
Worked example
Income20000 and average equity100000 gives20%.
Assumptions
Restricted here to positive equity; negative-equity cases need separate interpretation.
Formula version 1.0.0. JavaScript floating-point arithmetic applies. Results display up to 6 decimal places; stored values retain available precision. Use the units shown.
Practice with an example
Use the default input values to find the answer. The reset icon restores those values.
Calculated on your device. Your latest 100 calculations stay in this browser.