Operating Profit Calculator

Operating Profit Calculator calculator can be used to calculate the operating profit of a business by subtracting operating expenses from gross profit.

Input Parameters

Calculation Results

Calculation Formula

Operating Profit = Gross Profit - Operating Expenses

Where:
Gross Profit: The total revenue minus the cost of goods sold.
Operating Expenses: The expenses incurred in the normal course of business operations, such as salaries, rent, and utilities.

Operating Profit

Operating Profit Calculator Calculator Usage Guide

Learn how to use the Operating Profit Calculator calculator and its working principles

How to Use the Operating Profit Calculator

  1. Enter the Gross Profit in the first input field.
  2. Enter the Operating Expenses in the second input field.
  3. Click the "Calculate" button to compute the Operating Profit.
  4. The result will be displayed in the Operating Profit field.

Understanding Operating Profit

Operating Profit is a key financial metric that indicates a company's profitability from its core business operations. It is calculated by subtracting operating expenses from gross profit. This figure helps in understanding how efficiently a company is managing its day-to-day expenses.

Example

If a company has a Gross Profit of $500,000 and Operating Expenses of $300,000, the Operating Profit would be $200,000.