Budgeted Profit

The Budgeted Profit calculator computes the budgeted profit based on the budgeted revenue and expenses.

INSTRUCTIONS: Choose currency units and enter the following:

• (BR) This is the budgeted revenue
• (BE) This is the budgeted expenses

Budgeted Profit (BP):  The calculator returns the budgeted profit in U.S. dollars.  However this can be automatically converted to compatible units (other currencies) via the pull-down menu.

The Math / Science

Budgeted profit is the difference between estimated revenues and estimated expenses as determined by the different budgets a company prepares, i.e. sales budget, production budget, selling and administrative expense budget, etc.

The formula for Budget Profit is:

   BP = BR - BE

where

• BP is the Budgeted Profit
• BR is the Budgeted Revenue
• BE is the Budgeted Expense

Resource:

• Dopson, Lea R., and David K. Hayes. Managerial Accounting for the Hospitality Industry. Hoboken, NJ: Wiley, 2009. Print.