Enter the business cost ($) and the total revenue ($) into the Cost Ratio Calculator. The calculator will evaluate and display the Cost Ratio.
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Cost Ratio Formula
The following formula is used to calculate the Cost Ratio.
CSTR = C / R * 100
- Where CSTR is the Cost Ratio (%)
- C is the business cost ($)
- R is the total revenue ($)
To calculate the cost ratio, divide the business cost by the total revenue.
How to Calculate Cost Ratio?
The following example problems outline how to calculate Cost Ratio.
Example Problem #1:
- First, determine the business cost ($).
- The business cost ($) is given as: 300.
- Next, determine the total revenue ($).
- The total revenue ($) is provided as: 800.
- Finally, calculate the Cost Ratio using the equation above:
CSTR = C / R * 100
The values given above are inserted into the equation below and the solution is calculated:
CSTR = 300 / 800 * 100 = 37.5 (%)
Example Problem #2:
For this problem, the variables required are provided below:
business cost ($) = 600
total revenue ($) = 1200
Test your knowledge using the equation and check your answer with the calculator above.
CSTR = C / R * 100 = ?