Return on equity calculator

Return on equity = net income ÷ average shareholder equity × 100.

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Net income

Average shareholder equity

Answer

…

Return on equity = net income ÷ average shareholder equity × 100.

More results

Precision and calculation record

Decimal places in numeric results and text downloads

Rounding changes displayed numbers, not the calculation. Text, fractions, matrices and CSV schedules keep their own formatting. Automatic keeps up to 12 significant digits, with money shown to cents where applicable.

Step-by-step calculation

Inputs are substituted below. Each line evaluates the next operation; intermediate values are displayed to 12 significant digits while the calculation uses full precision.

Saved scenario

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Formula and assumptions

Match the income period with average equity for that period. This positive-equity ratio is not comparable when equity is zero or negative.

Automatic precision shows numbers to 12 significant digits. Thousands separators such as 1,000 are accepted; use a dot for decimals.

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Updated 2026-09-26

Using Return on equity calculator

Return on equity = net income ÷ average shareholder equity × 100.

Match the income period with average equity for that period. This positive-equity ratio is not comparable when equity is zero or negative.

Next: Calculate ROI

A worked example

With net income = 12000, average shareholder equity = 100000, the return on equity (%) is 12.

Next: Stock average calculator

Before you use the result

Match the income period with average equity for that period. This positive-equity ratio is not comparable when equity is zero or negative.

Example results for net income

These examples use Average shareholder equity: 100000. They are reference calculations, not recommended settings.

Net income	Return on equity (%)
6000	6
12000	12
24000	24

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