Step-by-step instructions
- Enter or select Net income.
- Enter or select Shareholders' equity.
- Tap Calculate.
- Review the result shown directly below the calculator.
Return on Equity Calculator
Calculate return on equity.
How to use the Return on Equity Calculator
Calculate return on equity.
What the inputs mean
- Net income
- Enter the income amount for the period you are analyzing.
- Shareholders' equity
- Enter the value requested by this field label.
Formula or calculation method
Net income is divided by Shareholders' equity and the result is multiplied by 100 to express the relationship as a percentage.
Example
For example, if Net income is 25 and Shareholders' equity is 100, the calculated result is 25%.
How to understand the result
The result is a percentage. A higher or lower percentage has different meaning depending on the calculator, so compare it with the goal, limit, benchmark, or historical value relevant to your situation.
Tip: Keep all values in compatible units and use values from the same time period when the calculator compares two amounts.