ROCE Calculator over Initial & Average Investment Tool

Average Annual Operating Profit:

Initial Investment:

Scrap Value:

Calculation Method: Using Initial Investment Using Average Investment

ROCE Formula:

ROCE = (Average Annual Operating Profit / Initial Investment) × 100

OR

ROCE = (Average Annual Operating Profit / Average Investment) × 100

Where, Average Investment = (Initial Investment + Scrap Value) / 2

For Example:

Operating Profit: 50000

Initial Investment: 200000

Scrap Value: 10000

Average Investment = (200000 + 10000) / 2 = 105000

ROCE (Initial Investment) = (50000 / 200000) × 100 = 25%

ROCE (Average Investment) = (50000 / 105000) × 100 ≈ 47.62%

The decision rule for ROCE is:

If ROCE is greater than target ACCEPT

If ROCE is less than target REJECT

Feature	Details
Price	Free
Rendering	Client-Side Rendering
Language	JavaScript
Paywall	No

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