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 ($) 
  • C is the initial cost ($) 

To calculate the return on investment ratio, divide the profit by 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  = ?