Enter the total revenue and total expenses into the calculator to determine the net loss of a business or business sector.

## Net Loss Formula

The following formula is used to calculate a net loss.

L = R - E
• Where L is the net loss ($) • R is the revenue ($)
• E is the expenses

To calculate net losses, subtract the net expenses from the net revenue.

## Net Loss Definition

A net loss is defined as the total monetary loss of a business over a given time period. It can also be described as the total revenue minus the total expenses.

## FAQ

Is net loss the same as net profit?

The net loss and net profit of a business are calculated using the same formula, and therefore the terms can be used to mean the same thing.

Net loss is most often used when talking about a negative value when using the formula above and a net profit is used when that value is positive.

What happens if a business has a net loss?

Depending on the time period or stage of a business, a net loss is not necessarily a bad thing.

For example, if a company is in an early-stage startup stage, then the company is likely spending lots of money to grow as fast as possible without regard to making a profit. In this case, as long as the invested money is covering losses, it is ok.

If, however, you are looking at a long-term steady-state company like a restaurant, then running at a loss for an extended period of time will cause the business to go bankrupt if it cannot receive further funding.