Net Loss Calculator

Formula

To calculate the net loss ($L$):

\[ L = R - E \]

Where:

$L$ is the net loss ($)
$R$ is the revenue ($)
$E$ is the expenses ($)

What is Net Loss?

A net loss is defined as the total monetary loss of a business over a given time period. It can also be described as the total revenue minus the total expenses. When analyzing a loss, the revenue minus expenses should come out negative. For example, $200 revenue and $300 expenses would be -$100 net loss. You can switch the equation around if you prefer to work with positive numbers. Just make sure that you are understanding this is still a loss.

Example Calculation 1

Let's assume the following values:

Revenue ($R$) = $200
Expenses ($E$) = $300

Using the formula:

\[ L = 200 - 300 = -100 \]

The net loss is -$100.

Example Calculation 2

Let's assume the following values:

Revenue ($R$) = $500
Expenses ($E$) = $700

Using the formula:

\[ L = 500 - 700 = -200 \]

The net loss is -$200.