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.

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## 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, the 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, their are only two was to improve ROS; decrease operating expenses, or increase sales. How a company goes about those two things is an entire subject in it’s own.

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