Accounting Profit Calculator

Calculate accounting profit by entering total revenue and total expenses to determine your business's profitability.

Input Parameters

Calculation Results

Calculation Formula

Accounting Profit = Total Revenue - Total Expenses

Where:
- Total Revenue: The total income generated from business activities
- Total Expenses: All costs incurred in operating the business

Accounting Profit Calculator Usage Guide

Learn how to use the Accounting Profit Calculator to analyze your business's financial performance.

How to Use This Calculator

  1. Enter your total revenue (the total amount earned from sales and other business activities).
  2. Enter your total expenses (all costs incurred in running your business, including cost of goods sold, operating expenses, salaries, taxes, etc.).
  3. Click the "Calculate" button to determine your accounting profit.
  4. The calculator will also show your profit percentage, which indicates how much of your revenue is profit.

Understanding Accounting Profit

Accounting profit represents the difference between your total revenue and total expenses. It's an important measure of financial performance that shows whether your business is generating more income than it's spending.

Example Calculation

If your business has total revenue of $50,000 and total expenses of $30,000:

  • Accounting Profit = $50,000 - $30,000 = $20,000
  • Profit Percentage = ($20,000 / $50,000) × 100 = 40%

Interpreting Results

A positive accounting profit indicates your business is profitable, while a negative value indicates a loss. The profit percentage gives you a relative measure of profitability regardless of your business size.