Enter the annual business profit ($) and the purchase price of the business ($) into the Return on Business Calculator. The calculator will evaluate and display the Return on Business. 

Return on Business Formula

The following formula is used to calculate the Return on Business. 

ROB = AP / PP * 100

  • Where ROB is the Return on Business (%)
  • AP is the annual business profit ($) 
  • PP is the purchase price of the business ($) 

How to Calculate Return on Business?

The following example problems outline how to calculate Return on Business.

Example Problem #1:

  1. First, determine the annual business profit ($). 
    • The annual business profit ($) is given as: 10,000.
  2. Next, determine the purchase price of the business ($). 
    • The purchase price of the business ($) is provided as: 200,000.
  3. Finally, calculate the Return on Business using the equation above: 

ROB = AP / PP * 100

The values given above are inserted into the equation below and the solution is calculated:

ROB = 10,000 / 200,000 * 100 = 5 (%)


Example Problem #2: 

For this problem, the variables needed are provided below:

annual business profit ($) = 60,000

purchase price of business ($) = 175,000

This example problem is a test of your knowledge on the subject. Use the calculator above to check your answer. 

ROB = AP / PP * 100 = ?