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:
- First, determine the variable cost ($).
- The variable cost ($) is given as: 1,000.
- Next, determine the net revenue ($).
- The net revenue ($) is provided as: 7,000.
- 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
Test your knowledge using the equation and check your answer with the calculator above.
VCR = VC / NR * 100 = ?
