How do I use this calculator?
The basic portion of this calculator allows you to calculate any of the variables shown directly above.
Calculator Operations:
- Enter the monthly revenue and monthly expenses to calculate the annual profit.
- Enter the monthly revenue and annual profit to calculate the monthly expenses.
- Enter the monthly expenses and annual profit to calculate the monthly revenue.
The advanced version of this calculator adds an additional parameter of tax rate to calculate the profit after tax.
Use the calculate button when all known values have been entered and use the reset button when you want to clear the values from the calculator.
Enter the monthly revenue ($) and the monthly expenses ($) into the calculator to determine the Annual Profit.
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Annual Profit Formula
The following formula is used to calculate the Annual Profit.
AP = (MR - ME) * 12
- Where AP is the Annual Profit ($)
- MR is the monthly revenue ($)
- ME is the monthly expenses ($)
To calculate the annual profit, subtract the monthly expenses from the monthly revenue, then multiply by 12.
How to Calculate Annual Profit?
The following example problems outline how to calculate Annual Profit.
Example Problem #1:
- First, determine the monthly revenue ($). In this example, the monthly revenue ($) is given as 500.
- Next, determine the monthly expenses ($). For this problem, the monthly expenses ($) is given as 200.
- Finally, calculate the Annual Profit using the equation above:
AP = (MR – ME) * 12
The values given above are inserted into the equation below:
AP = (500 – 200) * 12 = 3,600 ($)
Example Problem #2:
The variables needed for this problem are provided below:
monthly revenue ($) = 1600
monthly expenses ($) = 300
Entering these values and solving gives:
AP = (1600 – 300) * 12 = 15,600 ($)
