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 ($)
- TC is the total cost ($)
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 = ?
