Skip to content
Business Calculators

Return on Equity Calculator

Verified formula Updated Jun 2026 Private — runs on your device

Enter details
Verified formula Private

Return on equity (ROE)

20.00%

For general information only — not financial, tax, legal or medical advice. Verify before you rely on it.

How to use the Return on Equity Calculator

The Return on Equity Calculator works out your return on equity (roe) in an instant. Enter net income and shareholders' equity and the result updates as you type — it is free, needs no sign-up, and runs entirely in your browser so your figures stay private.

  1. Enter the net income.
  2. Enter the shareholders' equity.
  3. Read off your return on equity (roe) — the calculator updates automatically, with no button to press.

Formula

The Return on Equity Calculator uses the formula:

Return on equity (ROE) = Net income ÷ Shareholders' equity × 100

Worked example

For example, with net income of ₹500,000 and shareholders' equity of ₹2,500,000, the return on equity (roe) is 20.00%.

Inputs used
Net income ₹500,000
Shareholders' equity ₹2,500,000
Results
Return on equity (ROE) 20.00%

Results are estimates for educational use, not professional advice.

Key terms explained

Return on equity
Net income as a percentage of shareholders' equity (ROE) — how efficiently equity generates profit.

Frequently asked questions

ROE is net income divided by shareholders' equity, shown as a percentage. 5,00,000 profit on 25,00,000 equity is a 20% ROE.

It varies by industry, but a sustained ROE around 15–20% is often seen as strong. Compare with peers and watch the trend over time.

Yes. High debt can inflate ROE because it shrinks equity, so check the debt level and consider return on assets too.

ROE measures profit against equity only, while ROA measures profit against all assets, including those funded by debt.

The Return on Equity Calculator uses the formula: Return on equity (ROE) = Net income ÷ Shareholders' equity × 100. For example, with net income of ₹500,000 and shareholders' equity of ₹2,500,000, the return on equity (roe) is 20.00%.

Enter the net income. Enter the shareholders' equity. Read off your return on equity (roe) — the calculator updates automatically, with no button to press.

Related calculators