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Return on Capital Employed Calculator

LAST UPDATE: September 1st, 2018

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What is Return on Capital Employed?

Return on Capital Employed is a ratio of EBIT to Capital Employed. It is listed as a percentage.

Formula

Return on Capital Employed = (Earnings before Interest and Taxes / Capital Employed) x 100%

Example

A company has EBIT of $5,000 and capital employed of $8,000.

Return on Capital Employed = ($5,000 / $8,000) x 100% = 0.625 x 100% = 62.5%

Therefore, this company’s return on capital employed is 62.5%.

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