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:

Return on Capital 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(%):


Related Calculators: Cost of Goods Sold Calculator





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