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.