Return on Sales Calculator - Calculator Academy

Enter the operating profit and the net sales into the ROS calculator. The return on sales calculator will display the ROS in terms of percentage.

Return on Sales Formula

The following formula can be used to calculate the percent return on sales.

ROS = OP / NS *100

Where ROS is the return on sales percent
OP is the operating profit
NS is the net sales

In this case, net sales is another way of saying net revenue.

Return on Sales Definition

A return on sales, or ROS for short, is a measure of the growth in value of the return in investment in sales that a business generates.

How to calculate ROS?

How to calculate ROS (return on sales)

First, calculate the operating profit
To calculate the operating profit, sum together all costs associated with a good or service.
Second, determine the net sales
The net sales, also known as the net revenue, is equal to the total goods sold times their price.
Finally, calculate the ROS
Simply enter the values into the formula above to calculate the percent ROS.

FAQ

What is ROS?

ROS is short for return on sales. This is a ratio that represents the total net sales with respect to the operating cost. It’s a business metric used to determine profitability.

How can you improve ROS?

If you take a deeper look at the ROS formula, there are only two ways to improve ROS; decrease operating expenses, or increase sales. How a company goes about those two things is an entire subject on its own.