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 (\$)