Enter your total revenue, total expenses, item price, quantity sold, and total cost into the calculator to determine your net profit.

## Profit Calculation Formula

The following formula is used to calculate the net profit.

Net Profit = Total Revenue - Total Expenses

Variables:

- Net Profit is the net amount earned after deducting expenses ($)
- Total Revenue is the total income generated ($)
- Total Expenses is the total costs incurred ($)

To calculate the net profit, subtract the total expenses from the total revenue.

## What is Profit Calculation?

Profit calculation involves determining the net amount earned after deducting all expenses from the total revenue. It helps in evaluating the financial success of a venture or project.

## How to Calculate Net Profit?

Follow these steps to calculate the net profit using the given formula.

- Input your total revenue and total expenses for a basic calculation.
- For more detailed calculations, enter the item price, quantity sold, and total cost.
- Use the formula: Net Profit = Total Revenue – Total Expenses.
- After inserting the variables, calculate the result.
- Use the calculator above to verify your calculations.

**Example Problem:**

Use the following variables to test your understanding.

Total Revenue = $10,000

Total Expenses = $6,000

## FAQ

**1. What is net profit?**

Net profit is the total income generated after deducting all expenses.

**2. Why is profit calculation important?**

Profit calculation helps businesses assess their financial health and make informed decisions.

**3. How often should I use the profit calculator?**

Regularly using the profit calculator ensures accurate financial planning and assessment.

**4. Can this calculator be used for different industries?**

Yes