How do you calculate profit?

Answer by  Darbinater (47)

Profit is the amount of money that a business or individual has made. In general the calculation for the profit made is done by adding up all of the business' expenses and taking this from all of the businesses income. This value is the profit. Profit = income - expenses.

Answer by  steve88 (14)

When you want to make money, you have to spend money. Profit is the money you make after you're all finished. For example, you open a lemonade stand and it costs you $10. You sell $15. Your profit is $5. "How much you make" minus "how much it cost".

Answer by  ktt (355)

Profit is income minus costs. When you make money, your profit is whatever is left after your expenses. For example, if you have a store with sales of million dollars a year, but it $900 thousand in cost of good sold, wages, rent, etc, then your profit is the $100k left over.