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 ($) ## How to Calculate Operating Profit? The following example problems outline how to calculate Operating Profit. Example Problem #1 1. First, determine the total revenue ($). In this example, the total revenue ($) is given as 4000 . 2. Next, determine the operating costs ($). For this problem, the operating costs ($) is given as 2000 . 3. Next, determine the cost of goods sold ($). In this case, the cost of goods sold ($) is found to be 1000. 4. Finally, calculate the Operating Profit using the formula above: OP = R – OC – COGS Inserting the values from above yields: OP = 4000 – 2000 – 1000 = 1000.00 ($)

Example Problem #2

The variables needed for this problem are provided below:

total revenue ($) = 1400 operating costs ($) = 300

cost of goods sold ($) = 100 Entering these values and solving gives: OP = 1400 – 300 – 100 = 1000 ($)