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 “X” Calculators
- Return on Bond Calculator
- Average Return on Stocks Calculator
- Inventory Cost Calculator
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 = ?
