# Return on Assets Calculator (ROA)

URL: https://speedycalculator.com/calculators/finance/roa/
Last updated: 2026-10-25

> The return on assets calculator measures how efficiently a company turns its assets into profit – net income divided by total (or average) assets.

## Inputs

- Net income
- Total assets at the start
- Total assets at the end

## Results

- Average total assets
- Return on assets (ROA)

## Formula

```
ROA = net income ÷ total assets × 100
Average assets = (opening + closing assets) ÷ 2
```

## Explanation

ROA lets you compare companies of different sizes. Banks typically earn ROA around 1%, while asset-light software companies can exceed 15%. Compare within an industry.

### How to use the Return on Assets Calculator

- **Net income**
- **Total assets at the start**
- **Total assets at the end**

Results update as you type, and every field accepts the units shown in its menu.

### How it works

Enter net income and total assets at the start and end of the year.

### Tips

- Take figures from the same financial statements and the same fiscal year.
- Compare ratios with companies in the same industry, not across industries.
- Use several valuation measures together; no single ratio tells the whole story.
- Market prices change every second – refresh the share price before you rely on a result.

### Common mistakes to avoid

- Mixing per-share figures with company totals.
- Using trailing earnings for one company and forward earnings for another.
- Forgetting dilution from options and convertible securities.

### Inputs explained

FieldWhat to enterNet incomeAmount in your currencyTotal assets at the startAmount in your currencyTotal assets at the endAmount in your currency

### What each result means

- **Average total assets** = ([Total assets at the start] + [Total assets at the end])÷2
- **Return on assets (ROA)** = [Net income]÷[Average total assets]×100

### Example values

How the main result changes when **Net income** changes and everything else stays at the example values above:

Net incomeReturn on assets (ROA) (%)3,000,00034,500,0004.56,000,00067,500,0007.59,000,000912,000,00012

## Worked example

Inputs — Net income: $6,000,000; Total assets at the start: $95,000,000; Total assets at the end: $105,000,000.

Results — Average total assets = $100,000,000.00; **Return on assets (ROA) = 6 %**.

## FAQ

**What is a good ROA?**
Above 5% is often considered good, but it depends heavily on the industry.

**How is ROA different from ROE?**
ROA uses all assets; ROE uses only shareholders' equity.

**Why do banks have low ROA?**
They hold huge assets (loans) relative to their profits.

**What formula does the Return on Assets Calculator use?**
ROA = net income ÷ total assets × 100.


## Sources

- [Corporate Finance Institute – financial ratios](https://corporatefinanceinstitute.com/)