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. 

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 ($) 
  • IC is the total return ($) 

To calculate the return on invested capital, divide the total return by the total invested amount, then multiply by 100.

How to Calculate Return on Invested Capital?

The following example problems outline how to calculate Return on Invested Capital.

Example Problem #1:

  1. First, determine the total invested capital ($).
    • The total invested capital ($) is given as: 350.
  2. Next, determine the total return ($).
    • The total return ($) is provided as: 1000.
  3. 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  = ?