Finance / CALCULATOR

Three-Factor DuPont Return on Equity

Three-Factor DuPont Return on Equity: a supplied-input model with explicit assumptions and a worked example.

Runs on your deviceUpdates as you typeFormula & example ↓
01

Your inputs

Adjust the values to explore a different result.

%
Enter net profit margin in %.
Enter asset turnover.
Enter equity multiplier.

Formula

ROE=net margin × asset turnover × equity multiplier.
  • 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

Example inputs
  • 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.