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  = ?