Accounting Profit Calculator

LAST UPDATE: June 22nd, 2018


What is accounting profit?

Accounting profit is a method of calculating profit using explicit costs (where money changes hands).

For example, if a building is purchased for $100,000, and the next year would be worth $200,000 (but not sold) there is no increase in profit as there is no explicit transaction.

Accounting profit is typically used for tax calculations.


Accounting Profit = Revenue – Explicit Costs

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