Accounting Profit Calculator
Compute accounting profit — the difference between total revenue and all explicit (recorded) costs including COGS, operating expenses, admin, depreciation and other costs. Also shows gross profit, profit margin and a revenue breakdown.
Revenue minus all explicit (recorded) costs
500,000
RevenueCOGS
40%
Operating expenses
20%
Admin expenses
10%
Depreciation
6%
Other costs
4%
Profit
20%
- 1
Total explicit costs
200,000 + 100,000 + 50,000 + 30,000 + 20,000 = 400,000Sum of COGS, operating, admin, depreciation and other recorded costs. - 2
Gross profit
500,000 − 200,000 = 300,000 - 3
Accounting profit
500,000 − 400,000 = 100,000
How does this calculator work?
Accounting Profit = Revenue − Explicit Costs (COGS + operating + admin + depreciation + other). It is the profit figure on the income statement. Enter each cost line to see gross profit, net profit, gross margin and profit margin. Excludes implicit opportunity costs that economic profit deducts.
Formula
How this is calculated
Accounting profit is the profit figure reported in a company's income statement: it equals total revenue minus all explicit costs that have been recorded in the books. Explicit costs are actual cash outflows or book entries — wages, materials, rent, utilities, interest, taxes and depreciation — as opposed to implicit (opportunity) costs such as the owner's forgone salary, which are excluded.
The calculation follows a simple income-statement waterfall: Gross Profit = Revenue − COGS; Operating Profit = Gross Profit − Operating and Admin Expenses; Accounting (Net) Profit = Operating Profit − Depreciation − Other costs. Gross margin shows what fraction of revenue survives after direct production costs; profit margin shows the final slice that remains after all explicit costs.
Accounting profit differs from economic profit, which also deducts implicit opportunity costs, and from operating cash flow, which adds back non-cash charges like depreciation and adjusts for working-capital changes. As a result, a company can report positive accounting profit while consuming or generating cash at a very different rate. Use this tool to get the basic profit and margin figures; for deeper analysis compare with the operating cash flow from the cash-flow statement.
Frequently asked questions
Accounting profit deducts only explicit (recorded) costs from revenue. Economic profit also subtracts implicit opportunity costs — such as the return the owner could have earned elsewhere — so it is always equal to or less than accounting profit.
Yes. Depreciation is an explicit non-cash cost recorded in the income statement, so it reduces accounting profit even though no cash leaves the business in the period. This is why accounting profit often differs from operating cash flow.
Gross profit subtracts only cost of goods sold (COGS) from revenue. Accounting profit (net profit) then deducts all remaining explicit costs — operating expenses, admin, depreciation, interest and taxes — from gross profit.
TG we-Calculate Editorial Team. (2026). Accounting Profit Calculator [Online calculator]. TG we-Calculate. https://we-calculate.com/calculator/accounting-profit-calculator
TG we-Calculate Editorial Team. "Accounting Profit Calculator." TG we-Calculate. 2026. https://we-calculate.com/calculator/accounting-profit-calculator.
TG we-Calculate Editorial Team, "Accounting Profit Calculator," TG we-Calculate, 2026. [Online]. Available: https://we-calculate.com/calculator/accounting-profit-calculator
@misc{wecalculate_accounting_profit_calculator, title = {Accounting Profit Calculator}, author = {{TG we-Calculate Editorial Team}}, howpublished = {\url{https://we-calculate.com/calculator/accounting-profit-calculator}}, year = {2026}, note = {TG we-Calculate} }
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