# Accounting Profit Calculator

Looking to calculate your accounting profit quickly and accurately? Our accounting profit calculator is here to help! Simply enter all input in the calculator.

Total Revenue:

\$

Operation expenses:

\$

Interest:

\$

Depreciation:

\$

Taxes

\$
 Total Explicit Cost Accounting Cost

## What is accounting profit?

Accounting profit refers to the difference between total revenue earned and all explicit costs incurred by a business during a specific period. This type of profit calculation takes into account both cash and non-cash transactions, such as depreciation, taxes, interest, and operation expenses.

## Accounting Profit Formula

To calculate accounting profit, you subtract explicit costs from total revenue:

Accounting Profit = Total Revenue – Explicit Costs

• AP = TR – TEC
• TEC = OE + I + D + T
• AP = Accounting Profit
• TR = Total Revenue
• TEC = Total explicit costs
• OE = Operation expenses
• I = Interest
• D = Depreciation
• T = Taxes

## How to Calculate Accounting Profit?

Example:– Assume that a company earned \$100,000 in revenue last year, and its expenses were \$70,000. To calculate the company’s accounting profit, follow these steps:

1. Total revenue: \$100,000
2. Total explicit cost: \$70,000
3. Subtract the explicit from the revenue to determine the accounting profit:
Accounting Profit = Total Revenue – Total Explicit Cost

Accounting Profit = \$100,000 – \$70,000 = \$30,000

Therefore, the company’s accounting profit for the year was \$30,000.

## How to use an Accounting profit calculator

• First Enter the Total Revenue
• Enter Operation expenses and Interest Cost
• Enter total depreciation and taxes
• Then Click Calculate button