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 ($)