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Accounting Calculators

Return on Equity (ROE) Calculator

Return on equity: net income as a percentage of shareholders’ equity — how well a company uses owners’ capital.

Enter values

Results update as you type.

Result

ROE

15%

Step-by-stepShow
  1. ROE = 180,000 ÷ 1,200,000 × 100 = 15%

About the Return on Equity (ROE) Calculator

Return on equity: net income as a percentage of shareholders’ equity — how well a company uses owners’ capital.

Also known as: return on equity, roe formula.

How to use this calculator

  1. Enter net income, shareholders’ equity.
  2. The result updates instantly as you type — press Calculate (or Enter) at any time.
  3. Open “Step-by-step” to see how the answer was worked out.
  4. Use Copy result or Share to save the answer or send a link with your inputs.

Formula

ROE = Net income ÷ Shareholders’ equity × 100

Worked example

Using the values pre-filled in the calculator above:

  • Net income = 180,000
  • Shareholders’ equity = 1,200,000

the calculator returns:

  • ROE: 15%

Working

  1. ROE = 180,000 ÷ 1,200,000 × 100 = 15%