To calculate operating profit, subtract operating expenses from gross profit. Also referred to as operating income, operating profit represents the total profits, before taxes, that a business generates from its operatio... More »

Total profit, also called gross profit, is calculated by taking the total received from sales and subtracting the cost of the goods sold. It does not include expenditures, such as insurance and taxes. Gross profit is use... More »

Profit on return is calculated by subtracting a unit's selling price from the cost to produce, dividing that difference by the selling price and multiplying that number by 100. This equation gives the percentage margin o... More »

Net income plus operating expenses is equal to gross profit. The gross profit is what a company earns after it sells a product and pays all other costs associated with the production and sale of it. More »

To calculate profit and loss, evaluate revenue, cost of goods sold and the expenses incurred, then subtract cost of goods sold and expenses from sales. A positive result denoted profit, while a negative result indicates ... More »

A profit and loss worksheet includes all sources of income from a business and all expenses necessary to earn that income, explains Accounting Basics. The report can cover any time period for which you want to measure th... More » Business & Finance Financial Calculations

To prepare an income statement, first gather together sales and cost of goods sold data to determine business profits, and then gather the operating expenses. Once this information is presented in a table, subtract the t... More » Business & Finance Financial Calculations