Enter the total revenue ($), the operating costs ($), and the cost of goods sold ($) into the calculator to determine the Operating Profit.
Operating Profit Formula
The following formula is used to calculate the Operating Profit.
OP = R – OC – COGS
- Where OP is the Operating Profit ($)
- R is the total revenue ($)
- OC is the operating costs ($)
- COGS is the cost of goods sold ($)
How to Calculate Operating Profit?
The following example problems outline how to calculate Operating Profit.
Example Problem #1
- First, determine the total revenue ($). In this example, the total revenue ($) is given as 4000 .
- Next, determine the operating costs ($). For this problem, the operating costs ($) is given as 2000 .
- Next, determine the cost of goods sold ($). In this case, the cost of goods sold ($) is found to be 1000.
- Finally, calculate the Operating Profit using the formula above:
OP = R – OC – COGS
Inserting the values from above yields:
OP = 4000 – 2000 – 1000 = 1000.00 ($)
Example Problem #2
The variables needed for this problem are provided below:
total revenue ($) = 1400
operating costs ($) = 300
cost of goods sold ($) = 100
Entering these values and solving gives:
OP = 1400 – 300 – 100 = 1000 ($)
