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Revenue Less Explicit Costs Profit Calculator

Subtract operating expenses, depreciation, interest and taxes from revenue.

  • Formula & worked example
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Calculator inputs

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How to use this calculator

  1. Enter the known values in the units shown. Results update as you type.
  2. Edit a calculated value to solve backwards, or lock a value to hold it fixed.
  3. 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

Revenue of 100,000 less operating expenses of 60,000, interest of 5,000, depreciation of 10,000 and taxes of 5,000 leaves accounting profit of 20,000.

Accounting profit = revenue − operating expenses − depreciation − interest − taxes

Worked example

Enter these known values and leave the other values blank.

Total revenue
100000 USD
Operation expenses
60000 USD
Interest
5000 USD
Depreciation
10000 USD
Taxes
5000 USD
Total explicit costs
80000 USD
Accounting profit
20000 USD

Assumptions and limitations

  • Include cost of goods sold in the operating-cost amount for this layout. Do not count depreciation or any other cost twice. This simplified reconciliation excludes implicit opportunity costs and assumes all relevant explicit costs are supplied.
  • Use consistent periods, currency and accounting definitions. The result follows the stated formula and the figures you supply.

Common questions

Where should cost of goods sold and depreciation go?

Include cost of goods sold in the operating-cost amount for this layout. Do not count depreciation or any other cost twice. This simplified reconciliation excludes implicit opportunity costs and assumes all relevant explicit costs are supplied.

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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