Return on Equity (ROE) Calculator

Return on Equity: 20.00%
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Understanding Return on Equity (ROE)

What is ROE?

Return on Equity (ROE) measures how efficiently a company uses shareholders' investments to generate profits. It shows the percentage of profit earned for each dollar of shareholders' equity.

ROE Formula

ROE = (Net Income ÷ Shareholders' Equity) × 100%

Industry Benchmarks

  • Technology: 15-25%
  • Financial Services: 10-20%
  • Retail: 8-15%
  • Manufacturing: 10-15%