Enter the total profit ($) and the total cost ($) into the Return on Profit Calculator. The calculator will evaluate and display the Return on Profit.
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Return on Profit Formula
The following formula is used to calculate the Return on Profit.
ROProfit = TP / TC * 100
- Where ROProfit is the Return on Profit (%)
- TP is the total profit ($)
- TC is the total cost ($)
To calculate the return on profit, divide the total profit by the total cost, then multiply by 100.
How to Calculate Return on Profit?
The following example problems outline how to calculate Return on Profit.
Example Problem #1:
- First, determine the total profit ($).
- The total profit ($) is given as: 500.
- Next, determine the total cost ($).
- The total cost ($) is provided as: 375.
- Finally, calculate the Return on Profit using the equation above:
ROProfit = TP / TC * 100
The values given above are inserted into the equation below and the solution is calculated:
ROProfit = 500 / 375 * 100 = 133.33 (%)
Example Problem #2:
For this problem, the variables needed are provided below:
total profit ($) = 800
total cost ($) = 600
This example problem is a test of your knowledge on the subject. Use the calculator above to check your answer.
ROProfit = TP / TC * 100 = ?
