Enter the business cost ($) and the total revenue ($) into the Cost Ratio Calculator. The calculator will evaluate and display the Cost Ratio. 

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:

  1. First, determine the business cost ($).
    • The business cost ($) is given as: 300.
  2. Next, determine the total revenue ($).
    • The total revenue ($) is provided as: 800.
  3. 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 = ?