Variable Cost Ratio Calculator

Formula

The formula to calculate the Variable Cost Ratio (VCR) is:

\[ VCR = \frac{VC}{NR} \]

Where:

$ VCR $ is the variable cost ratio.
$ VC $ is the variable cost ($).
$ NR $ is the net revenue ($).

Example

Let's say the variable cost ($ VC $) is $50,000 and the net revenue ($ NR $) is $200,000. Using the formula:

\[ VCR = \frac{50,000}{200,000} \]

We get:

\[ VCR = 0.25 \]

So, the Variable Cost Ratio ($ VCR $) is 0.25.

What is Variable Cost Ratio?

The variable cost ratio is a metric that describes the proportion of variable costs to net revenue. It helps in understanding how much of the revenue is consumed by variable costs, which can be useful for budgeting and financial analysis.