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 ($)