How to use this calculator
- Enter revenue, explicit expenses, implicit opportunity costs.
- Choose a display currency, then select Calculate. Results also update after a brief pause while you edit.
- Read the result with the assumptions below. Export details or save a second scenario to compare your choices.
Formula and method
Economic profit = revenue − explicit costs − implicit opportunity costs.
Assumptions and limitations
Opportunity costs are your estimates; they are not automatically deductible tax expenses.
Worked example
With revenue = 100000, explicit expenses = 60000, implicit opportunity costs = 15000, economic profit is approximately 25000.
What the result means
Economic profit can be lower than accounting profit because it includes alternatives forgone.
Common questions
How should I interpret economic profit?
Economic profit can be lower than accounting profit because it includes alternatives forgone.
What should I check before using this result?
Opportunity costs are your estimates; they are not automatically deductible tax expenses.
Methodology and transparency
Calculation specification reviewed on 2026-10-14. Mathematical implementation is tested against independent reference fixtures. This does not imply review by a licensed financial professional. Read the testing and precision policy.