Enter the net earnings ($) and the total equity ($) into the Return on Earnings Calculator. The calculator will evaluate and display the Return on Earnings.

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## Return on Earnings Formula

The following formula is used to calculate the Return on Earnings.

**ROEA = NE / TE * 100**

- Where ROEA is the Return on Earnings (%)
- NE is the net earnings ($)
- TE is the total equity ($)

## How to Calculate Return on Earnings?

The following example problems outline how to calculate Return on Earnings.

Example Problem #1:

- First, determine the net earnings ($).
- The net earnings ($) is given as: 57,000.

- Next, determine the total equity ($).
- The total equity ($) is provided as: 300,000.

- Finally, calculate the Return on Earnings using the equation above:

ROEA = NE / TE * 100

The values given above are inserted into the equation below and the solution is calculated:

ROEA = 57,000 / 300,000 * 100 = 19.00 (%)

Example Problem #2:** **

For this problem, the variables needed are provided below:

net earnings ($) = 5,000

total equity ($) = 82,000

This example problem is a test of your knowledge on the subject. Use the calculator above to check your answer.

ROEA = NE / TE * 100** = ?**