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 ($)
- COGS is the cost of goods sold ($)

To calculate the operating profit, subtract the cost of goods sold and the operating costs from the total revenue.

## 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 ($)