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.

## 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:

1. First, determine the profit earned ($). • The profit earned ($) is given as: 35.
2. Next, determine the initial cost ($). • The initial cost ($) is provided as: 150.
3. 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  = ?