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 ($) To calculate the annual profit, subtract the monthly expenses from the monthly revenue, then multiply by 12. ## How to Calculate Annual Profit? The following example problems outline how to calculate Annual Profit. Example Problem #1: 1. First, determine the monthly revenue ($). 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 (\$)