Finance

Return on Equity (ROE) Calculator

Find return on equity.

Calculated Output

Return on equity (%) 20

Formula: ROE = net income ÷ equity × 100

Step-by-Step Breakdown

1. Values used:

2. Net income = 200,000 $

3. Shareholders' equity = 1,000,000 $

5. Return on equity = 20%

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The math behind it

ROE = net income ÷ shareholders' equity × 100.

$200k ÷ $1M → 20%.

Good ROE?

15–20%+ is often considered strong.