Free tool
Return on equity and return on assets calculator
See how much profit the business earns on the money invested in it. Enter net income and beginning and ending balances.
Prefer to talk it through? Take the free books check or contact us.
Share
Put this tool on your own site
Free to use. Paste this where you want it to appear. It runs in the visitor's browser, so nothing they enter is sent to us, and the line under it links back to this page.
How it works
How it works
ROE is net income divided by average shareholders' equity. ROA is net income divided by average total assets. Each average is (beginning + ending) divided by 2.
FAQ
About this calculator
What is a good ROE or ROA?
It varies a lot by industry and size. Compare with your own past years and with similar businesses.
Why use average balances?
Net income is earned over the whole year, so the average of the opening and closing balances matches it better than either one alone.
Where do I find the numbers?
Net income is on the income statement. Assets and equity are on the balance sheet at the start and end of the year.
Is anything saved?
No. The math runs in your browser and nothing you enter is sent to us.
Is this tax or financial advice?
No. It is a calculator for general information. Check the numbers against your own records, and ask an accountant before you act on them.
Related: net profit margin calculator, roi and payback calculator. See all free tools. More free tools: Vacation accrual calculator, Leads needed calculator, Loan-to-value ratio calculator, or see all free tools.
Free
Month-End Close Checklist (PDF)
The five-day close, one page to print. Enter your email and we send a link to confirm it is yours, then the download. We may email you about new toolkits, and every email has an unsubscribe link.
General information, not tax or legal advice. How we write and check our tools.