Enter the total costs ($) and the total revenue ($) into the calculator to determine the Profit From Cost.
Profit From Cost Formula
The following formula is used to calculate the Profit From Cost.
P = R - C
- Where P is the Profit From Cost ($)
- R is the total revenue ($)
- C is the total costs ($)
To calculate profit from cost, subtract the costs from the revenue.
How to Calculate Profit From Cost?
The following example problems outline how to calculate Profit From Cost.
Example Problem #1:
- First, determine the total costs ($) . In this example, the total costs ($) is given as 2000.
- Next, determine the total revenue ($). For this problem, the total revenue ($) is given as 5000.
- Finally, calculate the Profit From Cost using the equation above:
P = R – C
The values given above are inserted into the equation below:
P = 5000 – 2000 = 3000 ($)
Example Problem #2:
The variables needed for this problem are provided below:
total costs ($) = 500
total revenue ($) = 3000
Entering these values and solving gives:
P = 3000 – 500 = 2500 ($)