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 ($) To calculate the net annual cost, subtract the net annual profit from the net annual revenue. ## How to Calculate Net Annual Cost? The following example problems outline how to calculate Net Annual Cost. Example Problem #1: 1. First, determine the net annual revenue ($). The net annual revenue ($) is given as 150. 2. Next, determine the net annual profit ($). The net annual profit ($) is provided as 20. 3. Finally, calculate the Net Annual Cost using the equation above: NAC = NAR – NAP The values given above are inserted into the equation below: NAC = 150 – 20 = 130 ($)

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 (\$)