Question

How do you calculate Net Profit and Net Loss? What is the actual formula to do so?

Answer 1

Understanding Net Loss

Understanding Net LossA net loss appears on the company's bottom line or income statement. Net profit or net loss is calculated using the following formula: Revenues - Expenses = Net Profit or Net Loss.

Answer 2

Answer:

Since net profit equals total revenue after expenses, to calculate net profit, you just take your total revenue for a period of time and subtract your total expenses from that same time period. Here's an example: An ecommerce company has $350,000 in revenue with a cost of goods sold of $50,000.

A net loss appears on the company's bottom line or income statement.

Net profit or net loss is calculated using the following formula: Revenues - Expenses = Net Profit or Net Loss.