Calculator Inputs and Outputs
Inputs
- Net income — example: 120000
- Beginning equity — example: 650000
- Ending equity — example: 720000
Results
- Return on equity
- Average equity
Formula used
Return on equity = net income ÷ average shareholders’ equity × 100.
How to Use the Return on Equity Calculator
Enter the requested values, confirm the units and assumptions, then select Calculate Return on Equity. The default inputs provide a complete working example, and the supporting outputs help you verify the primary result.
Formula
Return on equity = net income ÷ average shareholders’ equity × 100.
Understanding the Results
The primary answer appears first, followed by useful supporting values, conversions, or comparisons. Calculations retain additional internal precision before displayed values are rounded.
Accuracy Tips
- Use consistent units and measured values.
- Review whether the assumptions match your situation.
- For estimates, include realistic waste, fees, efficiency, timing, or contingency values where provided.
Important Note
This calculator is for informational estimation. Verify critical financial, health, construction, scientific, tax, legal, or safety decisions with an appropriately qualified professional.
Calculation Standards
This tool uses documented formulas and high-precision internal values. Displayed results may be rounded for readability. Review the assumptions and verify important decisions with a qualified professional.
Read our calculation methodology