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

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:

  1. First, determine the total revenue ($). 
    • The total revenue ($) is given as: 675.
  2. Next, determine the total cost ($). 
    • The total cost ($) is provided as: 500.
  3. 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.