Enter the net revenue ($) and the net income ($) into the Calculator. The calculator will evaluate the Cost Expense. 

Cost Expense Formula

CE = NR - NI

Variables:

  • CE is the Cost Expense ($)
  • NR is the net revenue ($)
  • NI is the net income ($)

To calculate Cost Expenses, subtract the net income from the net revenue.

How to Calculate Cost Expenses?

The following steps outline how to calculate the Cost Expense.


  1. First, determine the net revenue ($). 
  2. Next, determine the net income ($). 
  3. Next, gather the formula from above = CE = NR – NI.
  4. Finally, calculate the Cost Expense.
  5. After inserting the variables and calculating the result, check your answer with the calculator above.

Example Problem : 

Use the following variables as an example problem to test your knowledge.

net revenue ($) = 30

net income ($) = 20

FAQ Section

What is net revenue?

Net revenue is the total amount of money generated by a company from its business activities, such as sales of products or services, after deducting returns, allowances for damaged or missing goods, and discounts. It represents the actual revenue that the company retains for its operations.

How is net income different from net revenue?

Net income, also known as net profit, is the amount of money that remains from the net revenue after all operating expenses, taxes, interest, and costs have been subtracted. It represents the company’s profit and is an indicator of its financial health and profitability.

Why is calculating cost expense important?

Calculating cost expense is crucial for businesses as it helps in understanding the total costs incurred to generate net revenue. This calculation aids in budgeting, financial planning, and identifying areas where cost reductions can be made to improve profitability.

Can cost expense impact a company’s financial performance?

Yes, cost expense directly impacts a company’s financial performance. High cost expenses can reduce net income, affecting profitability. By managing and reducing unnecessary costs, a company can improve its net income, thereby enhancing its financial health and potential for growth.