Cost to Retail Ratio Calculator

Formula

The formula to calculate the Cost to Retail Ratio (C:R) is:

\[ C:R = \frac{\text{COGS}}{\text{RVG}} \times 100 \]

Where:

$ \text{C:R} $ is the Cost to Retail Ratio (%)
$ \text{COGS} $ is the Cost of Goods Available for Sale ($)
$ \text{RVG} $ is the Retail Value of Goods Available for Sale ($)

What is Cost to Retail Ratio?

The Cost to Retail Ratio is a financial metric used to determine the percentage of the cost of goods available for sale relative to their retail value. It helps businesses understand the relationship between the cost of their inventory and its potential sales value.

Example Calculation

Let's assume the following values:

Cost of Goods Available for Sale (COGS) = $50,000
Retail Value of Goods Available for Sale (RVG) = $100,000

Using the formula to calculate the Cost to Retail Ratio:

\[ C:R = \frac{50,000}{100,000} \times 100 = 50\% \]

The Cost to Retail Ratio is 50%.