Formula: ROE (%) = (Net Income ÷ Shareholders’ Equity) × 100

Net income is your after-tax profit for the period. Shareholders’ equity is total assets minus total liabilities. In the example above, 50,000 in net income against 250,000 in equity produces a 20% return on equity.

This tool is provided for general informational purposes only and does not constitute financial advice. Verify results independently before making financial decisions.