Enter the expected profit ($) and the expected cost ($) into the calculator to determine the Expected Revenue.
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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 ($)
How to Calculate Expected Revenue?
The following example problems outline how to calculate Expected Revenue.
Example Problem #1:
- First, determine the expected profit ($). In this example, the expected profit ($) is given as 58.
- Next, determine the expected cost ($). For this problem, the expected cost ($) is given as 2.
- Finally, calculate the Expected Revenue using the equation above:
ER = EP + EC
The values given above are inserted into the equation below:
ER = 58 + 2 = 60 ($)
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 ($)
