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 ($)