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.

## 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:

1. First, determine the cost of goods sold ($). • The cost of goods sold ($) is given as: 400.
2. Next, determine the revenue generated from inventory ($). • The revenue generated from inventory ($) is provided as: 1000.
3. 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 = ?