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The Economic Profit calculator computes the Economic Profit by taking the total revenue and subtracting the total opportunity costs (not just the explicit costs, but also the implicit costs) of a venture to an investor. (see also Accounting Profit)
INSTRUCTIONS Choose units and enter the following:
- (TR) Total Revenue
- (EC) Explicit Costs
- (IC) Implicit Costs
Economic Profit (EP): The calculator returns the Economic Profit in U.S. dollars. However this can be automatically converted to compatible units via the pull-down menu.
The Math / Science
The formula for economic profit is:
EP = TR - (EC + IC)
where:
- EP is the Economic Profit
- TR is the total revenue
- EC is the explicit costs
- IC is the implicit costs
Accounting and Balance Sheet Calculators
- Accounting Profit - Accounting Profit is an income distributed to the firm in a profitable market production process (business).
- Accounting Assets - Value of assets (current and fixed) of a company
- Owners Equity - Assets minus Liabilities
- Accounting Liabilities - Liabilities are equal to the Assets minus the Shareholders Equity.
- Accounting Assets based on liabilities, stocks, retained earnings, revenue and expenses.
- Economic Profit - Includes revenue and explicit and implicit costs.
- Return On Investment (ROI) - The ROI equation is used to measure the benefits of a particular investment or to compare the performance or benefits across several other investments. It is also known as the rate of return.
- Cash Variance - Variance is the difference between a budgeted, planned or standard cost and the actual amount incurred/sold.
- Cash Variance % - Variance as a percentage
- Cash Variance % (v2) - Variance percent.
- compute the sum of Expenses, Revenue sources, Liabilities, Stocks, etc,CLICK HERE.
Resource:
- Mankiw, N. Gregory. "Chapter 13:What Are Costs?" Principles of Microeconomics. 6th ed. Mason, OH: Thomson/South-Western, 2004. 260-62. Print.
