Return on Equity (ROE) Calculator
Net income divided by shareholders' equity. Starting with example numbers — edit either field.
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Return on equity
20.00%
$120,000.00 ÷ $600,000.00 = 20.00%
An ROE of 20.00% means the company generates 20.00% of profit for every dollar of shareholders' equity — the higher the ROE, the more efficiently it's using equity financing to produce profit.