# Return on Capital Calculator

Return on capital (ROC) is one of the vital ratio for measuring the profit level of a firm. Return on capital helps to measure the amount of money an investment or business can generate on the money invested.

Return on capital can be calculated using the below formula:

Lets understand return on capital with this example,

Example: Company ABC is a manufacturing company that possess \$30,000 on net income, equity of shares \$30,000 with a total debt of \$150,000.
Solution:
Given: Net income: \$30,000
Equity: \$30,000
Debt: \$150,000

Formula to calculate return on capital:

Return on Capital = (Net income - Dividends) / (Debt + Equity)

= (30,000 - 0)/(150,000 + 30,000)

Return on capital = 16.6%

You can calculate return on capital by entering the input fields in the below calculator.

 Net Income: Dividends: Debt: Equity: Return on Capital(%):

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