Enter the expected value ($) and the expected cost ($) into the calculator to determine the Expected Profit.

## Expected Profit Formula

The following formula is used to calculate the Expected Profit.

EP = EV - EC
• Where EP is the Expected Profit ($) • EV is the expected value ($)
• EC is the expected cost ($) To calculate the expected profit, subtract the expected cost from the expected value. ## How to Calculate Expected Profit? The following example problems outline how to calculate Expected Profit. Example Problem #1: 1. First, determine the expected value ($). In this example, the expected value ($) is given as 123. 2. Next, determine the expected cost ($). For this problem, the expected cost ($) is given as 23. 3. Finally, calculate the Expected Profit using the equation above: EP = EV – EC The values given above are inserted into the equation below: EP = 123 – 23 = 100 ($)

Example Problem #2:

The variables needed for this problem are provided below:

expected value ($) = 60 expected cost ($) = 20

Entering these values and solving gives:

EP = 60 – 20 = 40 (\$)