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

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## 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**

- First, determine the final revenue ($). In this example, the final revenue ($) is given as 100 .
- Next, determine the final costs ($). For this problem, the final costs ($) is given as 20 .
- Next, determine the initial revenue ($). In this case, the initial revenue ($) is found to be 30.
- Next, determine the initial costs ($). These are found to be 10.
- 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** **($)