Enter the revenue generated from expenses ($) and the total expenses ($) into the Return on Expenses Calculator. The calculator will evaluate and display the Return on Expenses.
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Return on Expenses Formula
The following formula is used to calculate the Return on Expenses.
ROEXP = (RG – TE) / TE * 100
- Where ROEXP is the Return on Expenses (%)
- RG is the revenue generated from expenses ($)
- TE is the total expenses ($)
How to Calculate Return on Expenses?
The following example problems outline how to calculate Return on Expenses.
Example Problem #1:
- First, determine the revenue generated from expenses ($).
- The revenue generated from expenses ($) is given as: 5,000.
- Next, determine the total expenses ($).
- The total expenses ($) is provided as: 4,000.
- Finally, calculate the Return on Expenses using the equation above:
ROEXP = (RG – TE) / TE * 100
The values given above are inserted into the equation below and the solution is calculated:
ROEXP = (5000 – 4000) / 4000 * 100 = 25.00 (%)
Example Problem #2:
For this problem, the variables needed are provided below:
revenue generated from expenses ($) = 6000
total expenses ($) = 10000
This example problem is a test of your knowledge on the subject. Use the calculator above to check your answer.
ROEXP = (RG – TE) / TE * 100 = ?
