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 = ?
