**Instructions:** You can use this Return on Equity Calculator \((ROE)\), by providing the Net Income and the current total equity in the form below:

## Return on Equity Calculator

More about the *Return on Equity* so you can better use the results provided by this solver. The Return on Equity \((ROE)\) is the ratio of net income to total equity. This ratio is a profitability measure, and it indicates how many dollars in net income a firm has for each $1 in total equity. In order to calculate the ROE, we use the following formula:

You can also consider other measures of profitability, such as the return on assets or profit margin.

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