ROE Calculator
Free online return on equity calculator tool, no installation required
About ROE Calculator
Return on Equity (ROE) measures how efficiently a company turns shareholder equity into net profit. Enter net income and average shareholder equity, and the tool returns ROE as a percentage with a qualitative rating and a color band reflecting the strength of the result.
How to Use
1. Enter Net Income (the period's profit after tax) in the first field. 2. Enter Shareholder Equity (total equity, or average of beginning and ending equity) in the second field. 3. Click Calculate. 4. Read the ROE percentage (two decimals) and the rating card whose background color encodes performance.
Rating Thresholds
Formula: ROE = (Net Income / Shareholder Equity) × 100. The rating bands are: Poor (red) below 5%, Fair (orange) 5-9.99%, Good (yellow) 10-14.99%, Very Good (green) 15-19.99%, Excellent (emerald) 20% and above. Shareholder equity must be a positive number or the calculation is skipped.
▶What is a good ROE?
▶Should I use average equity or period-end equity?
▶What happens if shareholder equity is zero or negative?
▶Is my data sent to a server?
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