Return On Sales Calculator


Why should you use a calculator to calculate returns on sales?


With DaProfitClub software, you can calculate the RETURN on SALES efficiently and accurately. It's a free program that makes it easier to access online calculations without needing an account or payment.

 


How is the rate of return on sales calculated?

Think about the sports equipment store "Sports Extreme." It earns $200k per month in net sales, yet it has to pay the cost of $170k per month for doing so. While "Star Active," its competitor, is worth $50,000, its expenses are only $35,000 more. Which company has the best profit on sales among them?

Find "Sports Extreme's" operating profit by subtracting expenses from net sales.
operational profit equals $200 - $170k, or $30k.
To calculate the ROS figure, you must divide the figure by the net sales.


ROS = $30k / $200k = 15%


To activate "Star Active," follow the same procedure as previously:


operating profit = $50,000 - $35,00 = $15,000


ROS = $15k / $50k = 30%
 

 


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