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 ($)

## 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 ($)