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 ($)