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 ($) 

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 ($)