Enter the profit earned ($) and the initial cost ($) into the Return on Investment Ratio Calculator. The calculator will evaluate and display the Return on Investment Ratio.

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## Return on Investment Ratio Formula

The following formula is used to calculate the Return on Investment Ratio.

**ROIR = P / C **

- Where ROIR is the Return on Investment Ratio
- P is the profit earned ($)
- C is the initial cost ($)

## How to Calculate Return on Investment Ratio?

The following example problems outline how to calculate Return on Investment Ratio.

Example Problem #1:

- First, determine the profit earned ($).
- The profit earned ($) is given as: 35.

- Next, determine the initial cost ($).
- The initial cost ($) is provided as: 150.

- Finally, calculate the Return on Investment Ratio using the equation above:

ROIR = P / C

The values given above are inserted into the equation below and the solution is calculated:

ROIR = 35 / 150 = .233

Example Problem #2:** **

For this problem, the variables needed are provided below:

profit earned ($) = 60

initial cost ($) = 175

This example problem is a test of your knowledge on the subject. Use the calculator above to check your answer.

ROIR = P / C ** = ?**