Enter the monthly revenue ($) and the monthly expenses ($) into the calculator to determine the Annual Profit.
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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 ($)
To calculate the annual profit, subtract the monthly expenses from the monthly revenue, then multiply by 12.
How to Calculate Annual Profit?
The following example problems outline how to calculate Annual Profit.
Example Problem #1:
- First, determine the monthly revenue ($). In this example, the monthly revenue ($) is given as 500.
- Next, determine the monthly expenses ($). For this problem, the monthly expenses ($) is given as 200.
- Finally, calculate the Annual Profit using the equation above:
AP = (MR – ME) * 12
The values given above are inserted into the equation below:
AP = (500 – 200) * 12 = 3,600 ($)
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 ($)
