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.

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## 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:

- First, determine the total revenue generated ($).
- The total revenue generated ($) is given as: 900.

- Next, determine the cost of labor ($).
- The cost of labor ($) is provided as: 200.

- 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** = ?**