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 = ?