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.

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## 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:

- First, determine the profit generated from management ($).
- The profit generated from management ($) is given as: 1,000,000.

- Next, determine the cost of management ($).
- The cost of management ($) is provided as: 300,000.

- 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** = ?**