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

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## 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:**

- First, determine the expected value ($). In this example, the expected value ($) is given as 123.
- Next, determine the expected cost ($). For this problem, the expected cost ($) is given as 23.
- 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 ($)