Enter the cost of goods sold ($) and the revenue generated from inventory ($) into the Return on Inventory Calculator. The calculator will evaluate and display the Return on Inventory.

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## Return on Inventory Formula

The following formula is used to calculate the Return on Inventory.

**ROInv = (R-COGS) / R * 100**

- Where ROInv is the Return on Inventory (%)
- COGS is the cost of goods sold ($)
- R is the revenue generated from inventory ($)

## How to Calculate Return on Inventory?

The following example problems outline how to calculate Return on Inventory.

Example Problem #1:

- First, determine the cost of goods sold ($).
- The cost of goods sold ($) is given as: 400.

- Next, determine the revenue generated from inventory ($).
- The revenue generated from inventory ($) is provided as: 1000.

- Finally, calculate the Return on Inventory using the equation above:

ROInv = (R-COGS) / R * 100

The values given above are inserted into the equation below and the solution is calculated:

ROInv = (1000-400) / 1000 * 100 = 60.00 (%)

Example Problem #2:** **

For this problem, the variables needed are provided below:

cost of goods sold ($) = 800

revenue generated from inventory ($) = 1500

This example problem is a test of your knowledge on the subject. Use the calculator above to check your answer.

ROInv = (R-COGS) / R * 100** = ?**