Enter the average revenue, average cost, and total quantity into the calculator. The calculator will determine the total economic profit of the good or service.

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## Economic Profit Formula

The following equation can be used to calculate the total economic profit earned from a good or service.

EP = (R – C) * Q

- Where EP is the economic profit
- R is the average revenue
- C is the average cost
- Q is the total quantity sold

To calculate the economic profit, subtract the average cost from the average revenue, then multiply by the total quantity.

## Economic Profit Definition

Economic profit is the difference between the revenue from the sale of a good or service and the associated costs. Those associated costs include things like opportunity costs.

## Economic Profit Example

How to calculate economic profit?

**First, determine the average revenue.**Calculate the total average revenue per unit.

**Next, determine the average cost.**Calculate the average cost per unit.

**Next, determine the total quantity sold.**Calculate the total quantity of goods sold.

**Finally, calculate the economic profit.**Calculate the economic profit using the formula above.

## FAQ

**What is economic profit?**

Economic profit is a measure of the difference between economic revenue and economic costs.