Enter the total invested capital ($) and the total return ($) into the Return on Invested Capital Calculator. The calculator will evaluate and display the Return on Invested Capital.
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Return on Invested Capital Formula
The following formula is used to calculate the Return on Invested Capital.
ROIC = R / IC * 100
- Where ROIC is the Return on Invested Capital (%)
- R is the total invested capital ($)
- IC is the total return ($)
How to Calculate Return on Invested Capital?
The following example problems outline how to calculate Return on Invested Capital.
Example Problem #1:
- First, determine the total invested capital ($).
- The total invested capital ($) is given as: 350.
- Next, determine the total return ($).
- The total return ($) is provided as: 1000.
- Finally, calculate the Return on Invested Capital using the equation above:
ROIC = R / IC * 100
The values given above are inserted into the equation below and the solution is calculated:
ROIC = 350 / 1000 * 100 = 35 (%)
Example Problem #2:
For this problem, the variables needed are provided below:
total invested capital ($) = 60
total return ($) = 170
This example problem is a test of your knowledge on the subject. Use the calculator above to check your answer.
ROIC = R / IC * 100 = ?
