Return on Equity Calculator

Calculate the return on equity on a percent of total equity to net profit. This return on equity calculator helps you determine how successful your investment may be.

Return on Equity Formula

ROE = (net profit / equity) * 100%

  • Where ROE is return on equity (%)
  • Net profit is revenue – costs
  • equity is it total $ amount of your equity

Let’s take a look at an example of how this might be used in practice. Let’s assume you have a 40% stake in a company in equity. This has a value of $40,000.00. Over the past year that equity has earned a total of $10,000.00 in profit. Use the formula above we get the following:

ROE = (10,000/40,000) * 100 = 25%

A 25% return on equity is nothing to scoff at. If you look at it in terms of an investment, a 25% return on assets yearly is an incredible return compared to something like the stock market. In fact, a return on equity that large is almost unheard of on a larger scale.

How to calculate return on equity

Let’s take another look at an example of how to calculate a return on equity. Let’s assume you have a investment in real estate that has an equity of $1,000,000.00. This is a multi-family home that has 5 units. Each unit brings in $3,000.00 in rent per month after taxes. Now we need to calculate the total yearly income.

5 units * $3,000.00/months * 12 months = $156,000.00

Finally we can calculate the ROE because we have the total profit and equity.

ROE = $156,000.00/1,000,000.00*100 = 15.6%

This is also a very solid investment, especially if you consider the increase in the value of the real estate itself.

For more finance related calculators, click here.

Related Terms

return on equity calculator
return on equity formula
how to calculate return on equity
roe formula
roe calculation
how to calculate roe
roe equation
return on equity ratio formula
equity risk premium formula
return on common equity formula
return on equity equation
return on common stockholders equity formula
how to find return on equity
roe ratio formula
return on stockholders equity formula
how to find market risk premium
return on shareholders equity formula
average shareholders equity formula
roe calculation formula
calculate market risk premium
how do you calculate return on equity
how to calculate equity risk premium
return on equity ratio interpretation
how to calculate return on equity ratio
how to calculate average shareholders equity
return on owner’s equity formula
average stockholders equity formula
equity irr formula
return on shareholders fund formula
roe formula example
how to calculate average stockholders equity
how do you calculate roe
rate of return on equity formula
roe ratio interpretation
how to calculate return on stockholders equity
how to calculate return on common equity
how to compute return on equity
roe calc
average owners equity formula
roe formula finance
average common stockholders equity formula
return on average equity formula
how to calculate roe from balance sheet
expected return on equity formula
how to calculate roe ratio
how to find average shareholders equity
how to compute roe
how to calculate roe in excel
how to calculate roe formula
calculate equity risk premium
how to find return on common stockholders equity
how to calculate return on shareholders equity
how to calculate equity irr
roe calculation example
return on equity ratio calculator
return on total equity formula
average total equity formula
how to calculate return on equity from balance sheet
return on equity formula real estate
return on common equity calculator
roe accounting formula
how to calculate irr for private equity fund
return on equity calculation example
how to calculate return on owner’s equity
how to find equity risk premium
how to calculate return on equity percentage
return on common stockholders equity ratio formula
return on equity calc
return on shares formula
how to find the return on equity
return on stockholders equity calculator
formula for calculating return on equity
return on equity calculation formula
return on equity shareholders fund formula
how to find return on stockholders equity
equity reinvestment rate formula
how to find return on equity ratio
how to work out return on equity
return on average shareholders equity formula
return on equity capital formula
how to determine return on equity
compute return on equity
compute roe
return on shareholders equity calculator
estimating market risk premium
average shareholders equity calculator
find market risk premium
rate of return on stockholders equity formula
roe leverage formula
return on equity formula accounting
roe formula excel
how to calculate return of equity
how to calculate roe from annual report
how do you find return on equity
calculate average stockholders equity
how to calculate rate of return on equity
how to calculate equity return
roi and roe formula
find return on equity
roe return on equity formula
roe formula for banks
average market risk premium formula
required rate of return on equity formula
return on equity formula for banks
how to calculate required return on equity
return on equity formula excel
how to get average shareholders equity
how return on equity is calculated
how do i calculate return on equity
return on equity calculator excel
equity irr in excel
how to solve return on equity
average common stockholders equity calculator
estimating equity risk premium
loan roe calculator
how to calculate expected return on equity
return on owner’s equity calculator
equity fund return calculator
return on average owners equity formula
how to calculate rate of return on common stockholders equity
how to calculate return on equity in excel
how is market risk premium calculated
formula for calculating roe
how calculate return on equity
return on equity percentage calculator
how to calculate irr private equity
how to calculate return on average equity
how to calculate the market risk premium of a stock
how to calculate equity market risk premium
formula for return on shareholders equity
rate of return on common stock formula
how do you calculate return on equity ratio
real estate return on equity calculator