Enter the variable cost ($) and the net revenue ($) into the Variable Cost Ratio Calculator. The calculator will evaluate and display the Variable Cost Ratio.

## Variable Cost Ratio Formula

The following formula is used to calculate the Variable Cost Ratio.

VCR = VC / NR
• Where VCR is the Variable Cost Ratio
• VC is the variable cost ($) • NR is the net revenue ($)

To calculate the variable cost ratio, divide the variable cost by the net revenue.

## How to Calculate Variable Cost Ratio?

The following example problems outline how to calculate Variable Cost Ratio.

Example Problem #1:

1. First, determine the variable cost ($). • The variable cost ($) is given as: 1,000.
2. Next, determine the net revenue ($). • The net revenue ($) is provided as: 7,000.
3. Finally, calculate the Variable Cost Ratio using the equation above:

VCR = VC / NR  * 100

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

VCR = 1000 / 7000  * 100 = 14.285 (%)

Example Problem #2:

For this problem, the variables required are provided below:

variable cost ($) = 600 net revenue ($) = 1500