Home/Calculators/Return on Equity (ROE) Calculator

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Finance

Return on Equity (ROE) Calculator

Determine the profitability of a business relative to the book value of shareholder equity.

Inputs

-10,00,00,0001,00,00,00,000
11,00,00,00,000

Calculation Results

Return on Equity (ROE)

20.00%

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Formula & Mathematical Explanation

ROE=(Net IncomeShareholder’s Equity)×100\displaystyle \text{ROE} = \left( \frac{\text{Net Income}}{\text{Shareholder's Equity}} \right) \times 100

Return on Equity (ROE) measures the rate of return on the money that common stock investors have put into the business.

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