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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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Net income ($)

Total assets, start of year ($)

Total assets, end of year ($)

Equity, start of year ($)

Equity, end of year ($)

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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.

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