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

  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 ($)