Enter the total revenue ($) and the expenses ($) into the Return on Revenue Calculator. The calculator will evaluate and display the Return on Revenue.
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Return on Revenue Formula
The following formula is used to calculate the Return on Revenue.
ROR = (TR-E) / TR * 100
- Where ROR is the Return on Revenue (%)
- TR is the total revenue ($)
- E is the expenses ($)
To calculate the return on revenue, divide the profit by the revenue, then multiply by 100.
How to Calculate Return on Revenue?
The following example problems outline how to calculate Return on Revenue.
Example Problem #1:
- First, determine the total revenue ($).
- The total revenue ($) is given as: 750.
- Next, determine the expenses ($).
- The expenses ($) is provided as: 500.
- Finally, calculate the Return on Revenue using the equation above:
ROR = (TR-E) / TR * 100
The values given above are inserted into the equation below and the solution is calculated:
ROR = (750-500) / 750 * 100 = 33.33 (%)
Example Problem #2:
For this problem, the variables needed are provided below:
total revenue ($) = 185
expenses ($) = 123
This example problem is a test of your knowledge on the subject. Use the calculator above to check your answer.
ROR = (TR-E) / TR * 100 = ?
