Profit (from total) Calculator
Profit (from average) Calculator
Definition – What is profit?
Profit is the money that a firm makes. It is calculated as revenue minus expenses.
Profit (from total) Formula
Profit = Total Revenue – Total Costs
Profit (from average) Formula
Profit = (Average Revenue – Average Costs) x Quantity
Sources and more resources
- Khan Academy – Explicit and implicit costs and accounting and economic profit – Part of a larger course on microeconomics, this page summarizes different ways to calculate profit.
- Wikipedia – Profit maximization – Wikipedia’s article on different approaches to profit calculation.