Return on Assets Calculator
If you want to determine the profit company is making from its assets, then this return on assets calculator is a tool you can use.
Returns on assets, also known as ROA, are a percentage ratio used to calculate the company's total profit earned from its assets.
According to the business administration, above 5% of ROA is typically considered good.
Table of Contents
Formula of Return on Assets Calculator
If you want to calculate the ROA instantly, you can use our return on assets calculator or find it manually; you can use the simple formula listed below:
ROA = (net profit / total assets) * 100%
Where,
Net profit = total amount of profit earned by the company after paying all expenses.
Note:
To find out net operating profit after tax, you can use our NOPAT Calculator.
Why are ROA calculations necessary?
It is essential to calculate the return on assets of a company due to the factors listed below:

ROA report helps to determine the company's efficiency.

This ratio is typically used to compare the profit achievement earned by two different companies with similar assists.

ROA is the most crucial factor counted by an investor; An investor will never invest its money in a company making fewer returns on the asset.
Example
For more prices understanding, let us have an example below:
Suppose an ABC company is making a net profit of $3,100 from the total assets of $32,550. Calculate the returns on assets an ABC company is making.
Given data
Net profit = $3,100
Total assets = $32,550
To Find
Returns on assets = ?
Solution
To calculate ROA, let's use the formula below:
ROA = (net profit / total assets) * 100%
Putting values in the formula:
ROA = (3,100 / 32,550) * 100% = 9.538%
How to use the Return on Assets Calculator?
The steps to use the return on assets calculator are as follows:
Step 1: Enter net income in the first required input.
Step 2: Enter total assets in the second required input.
Step 3: The calculator will automatically display an answer on the screen.
Calculator use
To find ROE instantly, enter the required values in our free and online Returns on assets calculator, and it will display the answer on the screen.