Return on Assets Calculator
Calculate net income as a percentage of average total assets and keep the measurement period explicit.
Return on average assetsExample12.5%
- Average total assets
- $120,000
How to calculate return on assets
ROA = net income ÷ ((opening assets + closing assets) ÷ 2) × 100
Uses net income without an interest add-back and a two-point asset average. This period return is not automatically annualized; other ROA conventions can differ.
Worked example
An illustrative scenario. “Reset to example” restores it in the calculator.
- Net income for the period
- $15,000
- Opening total assets
- $100,000
- Closing total assets
- $140,000
Return on average assets: 12.5%
Return on Assets FAQ
Can ROA be negative?
Yes. A net loss produces negative ROA when average assets are positive. It reports the loss relative to invested assets, not a negative asset balance.