🧮 Tax & Accounting · Tool #15

Return on Equity (ROE) Calculator

Calculate ROE using net income and average shareholders equity.

Enter your figures

Use the inputs below to calculate the result.

Net income for the period.
Equity at the beginning of the period.
Equity at the end of the period.

Calculator Results

Results use the figures you enter.

Return on Equity (ROE)20.00%
Average Equity50,000.00
Net Income10,000.00
ROE20.00%
ImportantThis is a general accounting reference calculation. Definitions and reporting conventions can vary by jurisdiction, accounting framework and purpose.

How the Return on Equity (ROE) Calculator Works

Calculate ROE using net income and average shareholders equity.

ROE = Net Income ÷ Average Equity × 100

This calculator is a general planning and reference tool. Accounting standards, tax rules, reporting periods and professional requirements can differ by country and situation.

How to use this calculator

What to enter

Enter or select the following as requested: Net Income; Beginning Equity; Ending Equity. Follow the units, valid ranges, examples, and options displayed beside each field.

What the result means

The accounting result follows the amounts, period, tax rates, and accounting treatment entered. Confirm the jurisdiction, tax year, taxable base, inclusions and exclusions, and whether the figures are gross or net of tax.

When to use it

Use this for an initial estimate or bookkeeping cross-check. Verify the applicable current rules and source records before filing, paying tax, or making a formal financial statement.