How to Use the Net Loss Calculator
- Enter your total revenue (the total income generated from your business activities) in the "Total Revenue" field.
- Enter your total expenses (the total costs incurred in your business operations) in the "Total Expenses" field.
- Click the "Calculate" button to compute your net loss.
- The calculator will display your net loss amount and whether your business is operating at a loss, breaking even, or making a profit.
Understanding Net Loss
Net loss occurs when your total expenses exceed your total revenue. It's an important financial metric that helps you understand whether your business is sustainable in its current form.
The formula used by this calculator is:
Net Loss = Total Revenue - Total Expenses
Practical Applications
- Assessing the financial health of your business
- Identifying areas where you can reduce expenses
- Planning for future business decisions based on financial performance
- Tracking changes in your business's profitability over time