Return on Equity (ROE) Calculator

Measure how effectively management uses shareholder equity.

Net Income ($) Shareholder Equity ($)

What is Return on Equity (ROE) Calculator?

Return on Equity measures how much profit a company generates with the money shareholders have invested. It is a direct report card on management's ability to grow the business efficiently. This calculator gives you the ROE percentage in seconds.

How to Use This Tool

1. Enter the company's annual net income. 2. Input total shareholder equity from the balance sheet. 3. Click calculate to get the ROE percentage.

💡 Pro Tip: Always check if high ROE is driven by genuine profitability or by heavy debt — borrowing artificially inflates ROE. Pair this calculation with a debt-to-equity check for a complete picture of company health!