Return on Equity Calculator

           Our Return on Equity Calculator is very easy to use for everyone. And gives immediate response to calculations.    

ROE Calculator

ROE: 0.00%

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About Return on Equity (ROE) Calculator

              The Return on Equity Calculator is a tool designed to help estimate the profitability and efficiency of a business. By inputting the net income and total equity, the calculator easy computes the The Return on Equity ( ROE ) percentage, a important financial metric. The Return on Equity (ROE ) measures the company’s ability to generate profit from its shareholders’ equity, to show how effectively it utilizes investment funds. A higher ROE typically indicates better performance and potential for growth, making it a important indicator for investors and stakeholders to evaluate a company’s financial health and make informed decisions about investment and strategy.

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Return on Equity Calculation Formula:

 The Return on Equity (ROE) is calculated using the following formula -

=×100%

Return on Equity Calculator

Return on Equity Calculation Example

            Here we will calculate Return on Equity based on the formula given above. For instance, if a company has a net income of $ 500,000 and shareholder's equity of $ 2,000,000, the ROE would be -

=500,0002,000,000×100%=25%

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