# Return On Revenue Calculator

### Introduction

A return on revenue (ROR) calculator helps businesses measure their profitability relative to their revenue. It provides insight into how efficiently a company is generating profits from its revenue. This article will guide you through using a return on revenue calculator, explain the formula, provide an example, and answer some frequently asked questions.

### How to Use

**Enter Revenue**: Input the total revenue generated by your business.**Enter Net Income**: Input the net income, which is your revenue minus expenses, taxes, and costs.**Calculate**: Click the “Calculate” button to see your return on revenue.

### Formula

The formula to calculate return on revenue is:

This formula expresses the return on revenue as a percentage.

### Example Solve

For example, if a company has a revenue of $500,000 and a net income of $50,000, the return on revenue is calculated as follows:

### FAQ’s

**What is return on revenue?**

Return on revenue is a financial ratio that measures the percentage of profit a company earns in relation to its revenue.

**Why is return on revenue important?**

It helps assess the efficiency of a company in generating profits from its revenue, providing insight into operational performance.

**How can I improve my return on revenue?**

You can improve your return on revenue by increasing revenue, reducing costs, and optimizing operational efficiency.

### Conclusion

Understanding your return on revenue is crucial for evaluating the profitability and efficiency of your business. Use the calculator provided to gain insights and make informed financial decisions.