Enter the expected profit ($) and the expected cost ($) into the calculator to determine the Expected Revenue. 

Expected Revenue Formula

The following formula is used to calculate the Expected Revenue. 

ER = EP + EC

  • Where ER is the Expected Revenue ($)
  • EP is the expected profit ($) 
  • EC is the expected cost ($) 

How to Calculate Expected Revenue?

The following example problems outline how to calculate Expected Revenue.

Example Problem #1:

  1. First, determine the expected profit ($). In this example, the expected profit ($) is given as 58.
  2. Next, determine the expected cost ($). For this problem, the expected cost ($) is given as 2.
  3. Finally, calculate the Expected Revenue using the equation above: 

ER = EP + EC

The values given above are inserted into the equation below:

ER = 58 + 2 = 60 ($)


Example Problem #2: 

The variables needed for this problem are provided below:

expected profit ($) = 90

expected cost ($) = 10

Entering these values and solving gives:

ER = 90 + 10 = 100 ($)