Projected Profit Calculator

Formula

To calculate the projected profit:

\[ PP = PR - EC \]

Where:

$PP$ is the Projected Profit (\$)
$PR$ is the Project Revenue (\$)
$EC$ is the Expected Costs (\$)

What is Projected Profit?

Projected profit refers to the estimated amount of profit a project is expected to generate. It is calculated by subtracting the expected costs from the project revenue. This metric is crucial for budgeting, financial planning, and evaluating the potential success of a project.

Example Calculation 1

Let's assume the following values:

Project Revenue ($PR$) = $100,000
Expected Costs ($EC$) = $60,000

Using the formula:

\[ PP = 100,000 - 60,000 = 40,000 \, \text{\$} \]

The Projected Profit is $40,000.

Example Calculation 2

Let's assume the following values:

Project Revenue ($PR$) = $250,000
Expected Costs ($EC$) = $150,000

Using the formula:

\[ PP = 250,000 - 150,000 = 100,000 \, \text{\$} \]

The Projected Profit is $100,000.