---
title: "ROE and ROA Calculator: Return on Equity and Assets | MCC"
description: "Enter net income, assets and equity to calculate return on equity (ROE) and return on assets (ROA). Free and private."
url: "https://mcc-solutionsnj.com/bookkeeping/return-on-equity-and-assets-calculator"
---

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.

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Keeping your own books? Tallyfinch does invoices, bank import and reports on your computer. [See Tallyfinch](/bookkeeping/mcc-books-downloadable-bookkeeping-software)

Net income ($)

Total assets, start of year ($)

Total assets, end of year ($)

Equity, start of year ($)

Equity, end of year ($)

Prefer to talk it through? [Take the free books check](/bookkeeping/health-check) or [contact us](/contact).

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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.

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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](/bookkeeping/net-profit-margin-calculator), [roi and payback calculator](/bookkeeping/roi-and-payback-calculator). See [all free tools](/free-tools). More free tools: [Sales tax calculator](/bookkeeping/sales-tax-calculator), [Business loan payment calculator](/bookkeeping/business-loan-payment-calculator), [Self-employed tax calculator](/bookkeeping/self-employed-tax-calculator), or [see all free tools](/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](/editorial-standards).

Do it yourself

### Financial Ratio Analysis Workbook

Enter three years of statements and see margins, liquidity, leverage and efficiency ratios side by side, with what each one means in plain English.

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Tallyfinch

### Books you keep on your own computer

Tallyfinch does invoices, bills, bank import, reconciliation and the main reports, in a file you own. $99 once, then $5 a month for updates; the app keeps working if you stop the plan. It does not do payroll or sales tax filing. The free download records up to 60 entries.

[See Tallyfinch](/bookkeeping/mcc-books-downloadable-bookkeeping-software) [Download it free](/tools/pro/trial/mccBooks) [Compare the three apps](/software)

## Want your books and numbers handled?

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