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Profit After Opportunity Cost Calculator
Subtract explicit and implicit costs from revenue.
- Formula & worked example
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Calculator inputs
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How to use this calculator
- Enter the known values in the units shown. Results update as you type.
- Edit a calculated value to solve backwards, or lock a value to hold it fixed.
- Use the worked example to check the method. Reset restores the starting fields.
Use the result with context
Results are estimates for planning and education. Confirm rates, taxes, fees, and legal requirements with the relevant institution or a qualified professional before making a financial decision.
Formula and method
Economic profit subtracts both recorded expenses and the opportunity cost of resources from revenue. Revenue of 100,000 less 70,000 explicit costs and 10,000 implicit costs leaves 20,000.
Economic profit = revenue − explicit costs − implicit costs
Worked example
Enter these known values and leave the other values blank.
- Total revenue
- 100000 USD
- Explicit costs
- 70000 USD
- Implicit costs
- 10000 USD
- Economic profit
- 20000 USD
Assumptions and limitations
- Use values from a consistent period, scope and currency. The stated formula defines this simplified model; the explanation describes quantities it leaves out.
Common questions
What is an implicit cost?
It is the value of a forgone alternative, such as the income an owner could have earned elsewhere. It may matter economically even without a cash payment.
References
The calculation equations, inverse formulas, units, and input rules were imported from this source. Bookify provides the interface and equation solver.
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