Enter the total net income from assets and the total value of those assets into the return on assets calculator. The calculator will show the ROA in dollars and percent.

## Return on Assets Formula

The following formula is used to calculate the ROA.

ROA = NIA / AV *100

- Where ROA is return on assets (%)
- NIA is the net income from assets
- AV is the asset value

## ROA Definition

ROA, short for return on assets, is a measure of the total monetary return or growth an asset has generated over time.

## How to calculate ROA?

How to calculate ROA

**First, determine the value of the assets**The first step in calculating the ROA is determining the value of the assets. Since ROA is a ratio of asset value to income from assets, it’s important to value only the assets generating the income.

**Second, determine the net income**This will be the net income those assets are generating. Typically this falls in terms of sales or rent if you are talking about

**Last, calculate the ROA**Use the formula above to calculate the return on assets.

## FAQ

**What is ROA?**

ROA stands for return on assets. This is a measure of the percent “return” an assets provides. In other words, how much income an asset generates vs the cost.

**What is a good ROA?**

The answer to this question entirely depends on the type of asset. For example, a real estate asset like a rental home usually yields lower ROA, but the asset itself also grows in value over time, which is not considered in this equation.

**How do i increase my ROA?**

The answer to this could be multi-faceted, but to keep it short, we’ll give one solution. Reduce the operating expense of the asset. This will increase net profit and income, and increase the ROA.