Enter the total revenue generated ($) and the cost of labor ($) into the Return on Labor Calculator. The calculator will evaluate and display the Return on Labor. 

Return on Labor Formula

The following formula is used to calculate the Return on Labor. 

ROL = (R – CL) / CL * 100

  • Where ROL is the Return on Labor (%)
  • R is the total revenue generated ($) 
  • CL is the cost of labor ($) 

How to Calculate Return on Labor?

The following example problems outline how to calculate Return on Labor.

Example Problem #1:

  1. First, determine the total revenue generated ($). 
    • The total revenue generated ($) is given as: 900.
  2. Next, determine the cost of labor ($). 
    • The cost of labor ($) is provided as: 200.
  3. Finally, calculate the Return on Labor using the equation above: 

ROL = (R – CL) / CL * 100

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

ROL = (900 – 200) / 200 * 100 = 350 (%)


Example Problem #2: 

For this problem, the variables needed are provided below:

total revenue generated ($) = 8000

cost of labor ($) = 4000

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

ROL = (R – CL) / CL * 100 = ?