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Return On Assets (Bank) Calculator

Work out return on assets (bank) instantly with clear inputs, formula shown and shareable results.

About Return On Assets (Bank) Calculator

Return on assets for a bank is small in absolute terms because balance sheets are large relative to equity, so it is normally quoted in basis points. Around 100 basis points is the traditional benchmark for a well-run commercial bank.

Formula

Return on assets

ROA = net profit / average total assets

Worked example

With the default values below, Return On Assets (Bank) Calculator returns Return On Assets of 1.1667%. Change any input above and every figure here is recalculated in your browser.

Inputs used

Net Profitminimum 0
14,000,000
Average Total Assetsminimum 0
1,200,000,000
Prior Period Return In Basis Pointsaccepts 0–1,000
105

Results

Return On Assets
1.1667%
Return In Basis Points
116.7
Change Versus The Prior Period
11.7
Profit Per 100 Of Assets
$1.1667

Step by step

  1. 1Values used
  2. 2Return on assets
  3. 3Return On Assets= 1.1667
  4. 4Return In Basis Points= 116.7
  5. 5Change Versus The Prior Period= 11.7
  6. 6Profit Per 100 Of Assets= 1.1667

Assumptions and limits

  • The result is derived only from the 3 inputs listed above. Anything not among them is not part of the calculation.
  • In particular, this calculator does not take inflation, tax or fees or charges into account.
  • Figures are rounded for display to 4 decimal places, so totals built from several rounded parts can differ slightly from the unrounded arithmetic.
  • Figures are estimates based on the inputs given. Bank charges, regulatory minima and market rates change and differ between institutions and jurisdictions. This is not financial advice — confirm with your bank or treasury policy.

How these calculators are built and tested is described on the Methodology page. If a figure looks wrong, please report it.

Figures are estimates based on the inputs given. Bank charges, regulatory minima and market rates change and differ between institutions and jurisdictions. This is not financial advice — confirm with your bank or treasury policy.

Frequently Asked Questions

Why is bank return on assets so low?

Because banks are highly leveraged. A one percent return on assets can still be a fifteen percent return on equity.

Which asset figure should be used?

An average of opening and closing, since the balance sheet changes materially over a year.

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