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 = ?