Measure operating profit earned on the capital used in the business.
Please do not make financial decisions based on these results.
What is the Return on Capital Employed Calculator (ROCE)?
Measure operating profit earned on the capital used in the business. To use the Return on Capital Employed Calculator (ROCE), enter ebit, total assets, current liabilities; it returns roce, capital employed, and shows them instantly as you type.
Comparing returns
To judge past performance use the average return calculator and the ROI calculator. For projects with several cash flows, the IRR calculator gives a single comparable rate, and the payback period calculator shows how long it takes to recover the cost.
How to use the Return on Capital Employed Calculator (ROCE)
- Fill in the fields. You will need EBIT ($), Total assets ($), Current liabilities ($). Use a rate of return you consider realistic; small changes compound into large differences. Fields marked optional can stay at zero.
- Read the result. The highlighted box gives the ROCE, and the cards below show Capital employed. Tables and charts break it down further.
- Test other scenarios. Results update as you type. Change one value at a time to see what drives the answer, and press Reset to go back to the defaults.
Formula and how it works
Example with real numbers
Here is the Return on Capital Employed Calculator (ROCE) using the default values shown in the calculator above:
Inputs
| EBIT ($) | 400,000 |
|---|---|
| Total assets ($) | 3,000,000 |
| Current liabilities ($) | 800,000 |
Results
| ROCE | 18.18% |
|---|---|
| Capital employed | $2,200,000.00 |
With these inputs the calculator returns ROCE: 18.18%. Change any value in the calculator to see how the result moves.
What if you change one input?
Sensitivity check: raising EBIT ($) from 400,000 to 480,000 (about 20% higher) and leaving everything else as in the example above changes the results like this:
| Result | Example | After the change | Change |
|---|---|---|---|
| ROCE | 18.18% | 21.82% | +20% |
| Capital employed | $2,200,000.00 | $2,200,000.00 | 0% |
The input that moves the result most is the one to check twice. Change it in the calculator above to test your own case.
What the results tell you
The results panel of the Return on Capital Employed Calculator (ROCE) reports ROCE and capital employed. Compare these figures while changing one input at a time, and use the related calculators below to look at the same situation from another angle.
Method and limits. This calculator applies the formula in the section above to your inputs, in your browser; nothing you enter is stored on our servers. Investment returns are not guaranteed. The result shows what the numbers you enter would produce, not what the market will do. It is for information, not financial, tax or legal advice.
Frequently asked questions
What is a good ROCE?
Above the company’s cost of capital, and ideally above 15% for many industries.
What rate of return should I assume?
There is no guaranteed rate. Test a range of conservative and optimistic rates, and remember that fees and inflation reduce your real return.
Are investment returns guaranteed?
No. Real returns vary. Use these tools to compare scenarios, not to predict results.
Are the results guaranteed?
No. Results depend entirely on the numbers you enter and the formulas shown on this page. Please do not make financial decisions based on them alone; confirm important figures with a licensed professional.
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