Enter the gross profit (\$) and the total research capital (\$) into the Return on Research Capital Calculator. The calculator will evaluate and display the Return on Research Capital.

## Return on Research Capital Formula

The following formula is used to calculate the Return on Research Capital.

RORC = GP / RC

• Where RORC is the Return on Research Capital (.)
• GP is the gross profit (\$)
• RC is the total research capital (\$)

## How to Calculate Return on Research Capital?

The following example problems outline how to calculate Return on Research Capital.

Example Problem #1:

1. First, determine the gross profit (\$).
• The gross profit (\$) is given as: 100,000.
2. Next, determine the total research capital (\$).
• The total research capital (\$) is provided as: 10,000.
3. Finally, calculate the Return on Research Capital using the equation above:

RORC = GP / RC

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

RORC = 100,000 / 10,000  = 10.00

Example Problem #2:

For this problem, the variables needed are provided below:

gross profit (\$) = 50,000

total research capital (\$) = 500

This example problem is a test of your knowledge on the subject. Use the calculator above to check your answer.

RORC = GP / RC  = ?