Enter the amount saved by prevention ($) and the amount spent on prevention ($) into the Return on Prevention Calculator. The calculator will evaluate and display the Return on Prevention. 

Return on Prevention Formula

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

ROP = (AP - AS) / AS * 100
  • Where ROP is the Return on Prevention (%)
  • AP is the amount saved by prevention ($) 
  • AS is the amount spent on prevention ($) 

How to Calculate Return on Prevention?

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

Example Problem #1:

  1. First, determine the amount saved by prevention ($).
    • The amount saved by prevention ($) is given as: 1000.
  2. Next, determine the amount spent on prevention ($).
    • The amount spent on prevention ($) is provided as: 600.
  3. Finally, calculate the Return on Prevention using the equation above: 

ROP = (AP – AS) / AS * 100

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

ROP = (1000 – 600) / 600 * 100 = 66.67 (%)

FAQ

What is Return on Prevention (ROP)?
Return on Prevention (ROP) is a financial metric used to evaluate the effectiveness of prevention measures by comparing the amount saved through these measures to the amount spent on them. It is expressed as a percentage.

How do you calculate the Return on Prevention?
To calculate the Return on Prevention, you use the formula ROP = (AP – AS) / AS * 100, where AP is the amount saved by prevention and AS is the amount spent on prevention. The result gives you the ROP as a percentage.

Why is calculating Return on Prevention important?
Calculating Return on Prevention is important because it helps organizations understand the financial value of their prevention efforts. By quantifying the savings relative to the costs, businesses can make informed decisions about where to allocate resources for maximum impact on risk reduction and cost savings.