Enter the final revenue ($), the final costs ($), the initial revenue ($), and initial costs ($) into the calculator to determine the Increase in Profit. 

Increase in Profit Formula

The following formula is used to calculate the Increase in Profit. 

IOP = (FR-FC) - (IR-IC)
  • Where IOP is the Increase in Profit ($)
  • FR is the final revenue ($) 
  • FC is the final costs ($) 
  • IR is the initial revenue ($) 
  • IC is the initial costs ($)

How to Calculate Increase in Profit?

The following example problems outline how to calculate Increase in Profit.

Example Problem #1

  1. First, determine the final revenue ($). In this example, the final revenue ($) is given as 100 .
  2. Next, determine the final costs ($). For this problem, the final costs ($) is given as  20 .
  3. Next, determine the initial revenue ($). In this case, the initial revenue ($) is found to be 30.
  4. Next, determine the initial costs ($). These are found to be 10.
  5. Finally, calculate the Increase in Profit using the formula above: 

IOP = (FR-FC) – (IR-IC)

Inserting the values from above yields: 

IOP = (100-20) – (30-10) = 60 ($)

Example Problem #2

The variables needed for this problem are provided below:

final revenue ($) = 400

final costs ($) = 50

initial revenue ($) = 300

initial costs ($) = 50

Entering these values and solving gives:

IOP = (400-50) – (300-50) = 100 ($)