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 ($) = 50
Entering these values and solving gives:
IOP = (400-50) – (300-50) = 100 ($)
