Return on Sales Calculator


Return On Sales Calculator is used to compute the net profit margin or Return on Sales

Return On Sales Ratio (%):
What does Return on Sales mean?
Return on sales or net profit margin measures the net income earned for each dollar of sales. It is a commonly used indicator of ‘profitability’ and represents the final bottom line.
Return on sales=Earnings before interest and taxes ÷ Net sales

For example, a firm reports net profits of $50,000, interest expense of $10,000, and taxes of $15,000. The net sales reported are $1,000,000 for the same period. According to the formula, ROS is:-

  • = ($50,000 Earnings + $10,000 Interest + $15,000 Taxes) ÷ $1,000,000 Net sales
  • = 7.5% Return on sales