A ratio that expresses the amount of money made on an investment (the return) as a percentage of the money invested (the capital). Example: a business invests £60,000 in a new machine, which generates a return of £6,000. The return on capital will be 10% (£6,000 / £60,000 x 100). Return on capital can be used to compare the potential profitability of individual business projects / alternative investments. See also Return on capital employed (ROCE).