The formula to calculate the real estate profit (Pr) is:
\[ Pr = G - C \]
Where:
Real estate profit is the amount of money earned from a real estate investment after subtracting the total costs associated with the investment. This includes the purchase price, renovation costs, and any other expenses incurred during the investment period. The higher the profit, the more successful the investment.
Let's assume the following values:
Using the formula:
\[ Pr = 500,000 - 300,000 = 200,000 \, \text{dollars} \]
The Real Estate Profit is $200,000.
