Formulas to Calculate Profit
The various formulas to calculate Profit Formulas are:
- Formula for Profit Percentage is dependent on Profit and C.P.
Profit Percent Formula = (Profit × 100)/ C.P.
- Gross Profit Formula is the profit on the total sales of goods
Gross Profit = Total Revenue – Total Cost of Goods Sold
- Net Profit is the profit that is incurred after excluding all expenses and other costs.
Net Profit = Gross profit – Expenses
Profit Formula
Profit is defined as the amount obtained by selling a product that is greater than the cost price of the product. It is the amount gained from any type of commercial activity. In summary, if the selling price (SP) of a product is greater than the cost price (CP), it is deemed a gain or profit. It explains the financial gain achieved when the revenue from a commercial activity surpasses the taxes, costs, and so on that are involved in the maintenance of a firm.