How to Calculate Return of Earnings?

Determine the total earnings for the period

Determine the amount invested or starting capital

Subtract the starting capital from the total earnings to get net earnings

Divide net earnings by the starting capital

Multiply the result by 100 to get the return percentage

Formula: Return of Earnings = [(Total Earnings – Starting Capital) / Starting Capital] × 100

If needed, include additional income and subtract related costs before calculating the percentage

Use the same time period for all values being compared

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