Enter the profit generated from management ($) and the cost of management ($) into the Return on Management Calculator. The calculator will evaluate and display the Return on Management. 

Return on Management Formula

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

ROM = P / CM *100

  • Where ROM is the Return on Management (%)
  • P is the profit generated from management ($) 
  • CM is the cost of management ($) 

How to Calculate Return on Management?

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

Example Problem #1:

  1. First, determine the profit generated from management ($). 
    • The profit generated from management ($) is given as: 1,000,000.
  2. Next, determine the cost of management ($). 
    • The cost of management ($) is provided as: 300,000.
  3. Finally, calculate the Return on Management using the equation above: 

ROM = P / CM *100

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

ROM = 1,000,000 / 300,000 *100 = 333.33 (%)

Example Problem #2: 

For this problem, the variables needed are provided below:

profit generated from management ($) = 500,000

cost of management ($) = 100,000

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

ROM = P / CM *100 = ?