Enter the monthly revenue (\$) and the monthly expenses (\$) into the calculator to determine the Annual Profit.

## Annual Profit Formula

The following formula is used to calculate the Annual Profit.

AP  = (MR – ME) * 12

• Where AP is the Annual Profit (\$)
• MR is the monthly revenue (\$)
• ME is the monthly expenses (\$)

## How to Calculate Annual Profit?

The following example problems outline how to calculate Annual Profit.

Example Problem #1:

1. First, determine the monthly revenue (\$). In this example, the monthly revenue (\$) is given as 500.
2. Next, determine the monthly expenses (\$). For this problem, the monthly expenses (\$) is given as 200.
3. Finally, calculate the Annual Profit using the equation above:

AP  = (MR – ME) * 12

The values given above are inserted into the equation below:

AP  = (500 – 200) * 12 = 3,600 (\$)

Example Problem #2:

The variables needed for this problem are provided below:

monthly revenue (\$) = 1600

monthly expenses (\$) = 300

Entering these values and solving gives:

AP  = (1600 – 300) * 12 = 15,600 (\$)