# Return On Equity Calculator

Return On Equity (ROE) is also known as net assets or assets minus liabilities or return on net worth. It is a measure of profitability of the company. ROE ratio is the amount of net income generated by a firm from its shareholder's investments in the company. It is the measure of ability of company to generate earning growth. Return on equity ratio is typically expressed in percentage. Use our online return on equity calculator to calculate ROE based on Net Income and Shareholders Equity.

Return On Equity (ROE) is also known as net assets or assets minus liabilities or return on net worth. It is a measure of profitability of the company. ROE ratio is the amount of net income generated by a firm from its shareholder's investments in the company. It is the measure of ability of company to generate earning growth. Return on equity ratio is typically expressed in percentage. Use our online return on equity calculator to calculate ROE based on Net Income and Shareholders Equity.

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#### Formula:

Return on Equity (ROE) = (Net Income / Shareholder's Equity) × 100
### Example:

Calculate ROE of a company, whose Net income is 2 Crore and Shareholder's equity is 20000?

#### Solution:

Return on Equity = (20000000 / 20000) × 100

= 100000%