Formula
- Use the units shown beside each field.
- Results update automatically whenever you change an input.
- Displayed values use up to four decimal places, or scientific notation for very small or large numbers. Calculations use standard floating-point arithmetic; exact integer and fraction tools identify their own precision rules.
- Use consistent average assets/equity and the same period. A decomposition, not a forecast.
Example Calculation
- Net profit margin: 10 %
- Asset turnover: 2
- Equity multiplier: 1.5
Net profit margin = 10 %; Asset turnover = 2; Equity multiplier = 1.5. The primary result is 30.
Frequently asked questions
How do I use this calculator?
Enter net profit margin, asset turnover, equity multiplier. The result updates automatically. Use Reset to restore the example values.
What method does it use?
ROE=net margin × asset turnover × equity multiplier.. Use consistent average assets/equity and the same period. A decomposition, not a forecast.
Why might a rounded result differ?
The calculation keeps full numeric precision internally, then rounds the displayed result. Rounding intermediate steps by hand can produce a slightly different answer.
Are my inputs saved online?
No. This calculator processes your inputs in your browser. A recently used list stores only calculator names on this device, not your entered values.
Check the assumptions and units before using this result. Read about calculation methods.