Enter the total revenue ($) and the total cost ($) into the Return on Cost Calculator. The calculator will evaluate and display the Return on Cost.
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Return on Cost Formula
The following formula is used to calculate the Return on Cost.
ROC = (TR – TC) / TC * 100
- Where ROC is the Return on Cost (%)
- TR is the total revenue ($)
- TC is the total cost ($)
How to Calculate Return on Cost?
The following example problems outline how to calculate Return on Cost.
Example Problem #1:
- First, determine the total revenue ($).
- The total revenue ($) is given as: 675.
- Next, determine the total cost ($).
- The total cost ($) is provided as: 500.
- Finally, calculate the Return on Cost using the equation above:
ROC = (TR – TC) / TC * 100
The values given above are inserted into the equation below and the solution is calculated:
ROC = (675 – 500) / 500 * 100 = 35 (%)
Example Problem #2:
For this problem, the variables needed are provided below:
total revenue ($) = 800
total cost ($) = 500
This example problem is a test of your knowledge on the subject. Use the calculator above to check your answer.
