Accounting Profit Calculator

Enter the total revenue of a company and their explicit costs into the calculator. The calculator will evaluate and display the accounting profit of that company.

Accounting Profit Formula

The following equation can be used to calculate the accounting profit of any business or company.

AP = R – EC

  • Where AP is accounting profit
  • R is the revenue
  • EC are the explicit costs

Accounting Profit Definition

Accounting profit is the total revenue minus the explicit costs by definition. As for applicable uses, it’s one metric for how profitable a company is after expenses. It takes into account explicit costs only and not extraneous costs.

Accounting Profit Example

How to calculate accounting profit?

  1. First, determine the total revenue.

    Measure the total revenue earned by the business or segment.

  2. Next, determine the explicit costs.

    Measure the explicit costs associated with the revenue.

  3. Finally, calculate the accounting profit.

    Calculate the accounting profit using the formula above.


What is an accounting profit?

An accounting profit is the difference between revenue and explicit costs associated with a business or segment.

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