Enter the net annual revenue ($) and the net annual profit ($) into the Net Annual Cost Calculator. The calculator will evaluate and display the Net Annual Cost.
Net Annual Cost Formula
The following formula is used to calculate the Net Annual Cost.
NAC = NAR - NAP
- Where NAC is the Net Annual Cost ($)
- NAR is the net annual revenue ($)
- NAP is the net annual profit ($)
To calculate the net annual cost, subtract the net annual profit from the net annual revenue.
| Example Problem | Net Annual Revenue ($) | Net Annual Profit ($) | Net Annual Cost ($) |
|---|---|---|---|
| Problem 1 | 100,000 | 20,000 | 80,000 |
| Problem 2 | 500,000 | 50,000 | 450,000 |
| Problem 3 | 1,000,000 | 200,000 | 800,000 |
| Problem 4 | 50,000 | -10,000 | 60,000 |
| Problem 5 | 300,000 | 0 | 300,000 |
| Problem 6 | 750,000 | 100,000 | 650,000 |
How to Calculate Net Annual Cost?
The following example problems outline how to calculate Net Annual Cost.
Example Problem #1:
- First, determine the net annual revenue ($). The net annual revenue ($) is given as 150.
- Next, determine the net annual profit ($). The net annual profit ($) is provided as 20.
- Finally, calculate the Net Annual Cost using the equation above:
NAC = NAR – NAP
The values given above are inserted into the equation below:
NAC = 150 – 20 = 130 ($)
Example Problem #2:
The variables needed for this problem are provided below:
net annual revenue ($) = 780
net annual profit ($) = 80
Entering these values and solving gives:
NAC = NAR – NAP = 700.00 ($)
