ROE Calculator
Compute return on equity — the headline metric for evaluating how well a company turns shareholder capital into profit.
Inputs
ROE
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Run calculation
ROE—
Verdict—
ROE is the most-watched profitability ratio
Investors compare ROE across years and across competitors to evaluate management quality. 15%+ is a healthy long-term ROE for most industries; software and asset-light businesses regularly exceed 25%. Persistently low ROE is a flag for capital misallocation.
Frequently Asked Questions
Net income or operating income?
ROE uses net income (after tax). For operational efficiency comparisons, use ROIC.
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