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 = ?