Economic Profit vs Accounting Profit Calculator

Calculate Economic Profit (TR - Explicit - Implicit) and Accounting Profit. Evaluate true entrepreneurial returns.

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How to Use Economic Profit Calculator

  1. Enter Total Revenue (TR).
  2. Enter Total Explicit Costs (wages, rent, raw materials).
  3. Enter Total Implicit Costs (forgone owner salary, capital interest).
  4. Compare Accounting Profit vs True Economic Profit.

Economic Profit in Long Run

Zero economic profit (Normal Profit) means the business earns just enough to cover all explicit and implicit costs, keeping capital in the firm.

Frequently Asked Questions

What is the difference between accounting and economic profit?
Accounting Profit = Revenue - Explicit Costs. Economic Profit = Revenue - Explicit Costs - Implicit Opportunity Costs.