Advertising Profit Calculator

Formula

The formula to calculate the Advertising Profit is:

\[ \text{Ad Profit} = E - AC \]

Where:

$\text{Ad Profit}$ is the Advertising Profit ($)
$E$ is the total amount earned from advertising ($)
$AC$ is the total amount spent on advertising ($)

What is Advertising Profit?

Advertising profit is the net profit generated from advertising activities. It is calculated by subtracting the total amount spent on advertising from the total amount earned from advertising. This metric helps businesses understand the effectiveness and profitability of their advertising campaigns.

Example Calculations

Example 1:

Total Amount Earned from Advertising (E): $10,000
Total Amount Spent on Advertising (AC): $3,000

Using the formula:

\[ \text{Ad Profit} = 10,000 - 3,000 = 7,000 \text{ dollars} \]

Example 2:

Total Amount Earned from Advertising (E): $5,000
Total Amount Spent on Advertising (AC): $2,000

Using the formula:

\[ \text{Ad Profit} = 5,000 - 2,000 = 3,000 \text{ dollars} \]