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 “X” Calculators
- Return on Portfolio Calculator
- ROI Sales Calculator
- Return on Premium Calculator
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 = ?
