Return on Equity (ROE) Calculator

📘 Measure Profitability with Our Return on Equity (ROE) Calculator

When evaluating a company’s financial performance, one of the most insightful metrics is Return on Equity (ROE). It tells you how efficiently a company is using its shareholders’ equity to generate profits — and now, you can calculate it instantly using our ROE Calculator.

🔍 What is ROE?

Return on Equity (ROE) is a profitability ratio that measures how much net income a company generates for every rupee of shareholder equity. It’s a key indicator of financial health and management effectiveness.

ROE (%) = (Net Income / Shareholder’s Equity) × 100

A higher ROE generally indicates that the company is using its equity base efficiently to grow profits. However, it’s important to compare ROE across companies in the same industry for meaningful insights.

🧮 How to Use the ROE Calculator

Simply enter:

• The company’s Net Income
• The Shareholder’s Equity

And the calculator will instantly show you the ROE (%).

This tool is ideal for:

• Investors comparing companies
• Analysts preparing financial reports
• Students learning financial ratios

📈 ROE in Action

Let’s say a company has:

• Net Income: ₹50,00,000
• Shareholder’s Equity: ₹2,50,00,000

Then the ROE would be:

₹50,00,000 ÷ ₹2,50,00,000 × 100 = 20%

This means the company generates ₹0.20 in profit for every ₹1 of equity — a strong indicator of profitability.

💡 Final Thoughts

ROE is a powerful metric for assessing how well a company is turning equity into profit. It’s especially useful when comparing similar companies or tracking performance over time.

Use our ROE Calculator to analyze companies quickly and confidently — and add it to your toolkit for smarter financial decisions.