Stanaford Data / Investment & Finance

The total amount of money returned to investors expressed as a ratio of the amount returned to the total cost of the project. Thus if total project costs are $125 000 and $150 000 is returned, the Return on Cost is 1.20. This measure does not take into account the period of investment – if $150 000 is returned in one year or in eight, the Return on Cost is still 1.20.