How to Calculate Risk Adjusted Return on Capital?
Risk Adjusted Return on Capital calculator uses Risk Adjusted Return on Capital = (Revenue-Expenses-Expected Loss+Income From Capital)/Capital Cost to calculate the Risk Adjusted Return on Capital, Risk Adjusted Return on Capital (RAROC) is a modified return on investment (ROI) figure that takes elements of risk into account. Risk Adjusted Return on Capital is denoted by RAROC symbol.
How to calculate Risk Adjusted Return on Capital using this online calculator? To use this online calculator for Risk Adjusted Return on Capital, enter Revenue (R), Expenses (e), Expected Loss (el), Income From Capital (ifc) & Capital Cost (P_{Capital}) and hit the calculate button. Here is how the Risk Adjusted Return on Capital calculation can be explained with given input values -> 374.3372 = (780000-47000-6700+22000)/2000.