{
  "id": "economic-profit",
  "version": "e3a96e183e22",
  "status": "published",
  "name": "Economic Profit Calculator",
  "question": "What is my economic profit?",
  "summary": "Computes economic profit, total revenue minus explicit and implicit costs, and accounting profit, total revenue minus explicit costs.",
  "category": "finance",
  "subcategory": "business",
  "url": "https://www.acalculator.org/finance/economic-profit-calculator",
  "markdown": "https://www.acalculator.org/finance/economic-profit-calculator.md",
  "kind": "function",
  "method": "Economic profit = total revenue − explicit costs − implicit costs. Accounting profit = total revenue − explicit costs. Total economic cost = explicit costs + implicit costs.",
  "assumptions": [
    "Implicit costs are opportunity costs: what the owner’s own time, money and property would earn in their next best use.",
    "All amounts are for the same period, such as one year.",
    "Arithmetic is exact on the typed decimals; money shows to the cent, halves up."
  ],
  "inputs": {
    "$schema": "https://json-schema.org/draft/2020-12/schema",
    "type": "object",
    "properties": {
      "rev": {
        "title": "Total revenue",
        "description": "All the money the business takes in from sales: price × quantity sold.",
        "type": "number",
        "x-unit": "USD",
        "minimum": 0,
        "maximum": 1000000000000000
      },
      "exp": {
        "title": "Explicit costs",
        "description": "Out-of-pocket costs actually paid, such as wages, rent, materials and interest.",
        "type": "number",
        "x-unit": "USD",
        "minimum": 0,
        "maximum": 1000000000000000
      },
      "imp": {
        "title": "Implicit costs",
        "description": "The opportunity cost of resources the owner already has, such as the salary given up to run the business.",
        "type": "number",
        "x-unit": "USD",
        "minimum": 0,
        "maximum": 1000000000000000
      }
    }
  },
  "outputs": {
    "economic": {
      "label": "Economic profit",
      "description": "Total revenue − explicit costs − implicit costs.",
      "format": "money"
    },
    "accounting": {
      "label": "Accounting profit",
      "description": "Total revenue − explicit costs.",
      "format": "money"
    },
    "cost": {
      "label": "Total economic cost",
      "description": "Explicit costs + implicit costs.",
      "format": "money"
    }
  },
  "defaultAnswer": {
    "inputs": {
      "rev": 200000,
      "exp": 85000,
      "imp": 125000
    },
    "outputs": {
      "economic": -10000,
      "accounting": 115000,
      "cost": 210000
    },
    "text": "Economic profit is −$10,000.00; accounting profit, before implicit costs, is $115,000.00."
  },
  "examples": [
    {
      "given": {
        "rev": 200000,
        "exp": 85000,
        "imp": 125000
      },
      "expect": {
        "economic": -10000,
        "accounting": 115000,
        "cost": 210000
      },
      "source": "OpenStax, Principles of Microeconomics 3e, 7.1 Explicit and Implicit Costs, and Accounting and Economic Profit (accounting profit = total revenue − explicit costs; economic profit = total revenues − explicit costs − implicit costs; Eryn’s law practice: revenue $200,000, rent $50,000, clerk $35,000, forgone salary $125,000, economic profit −$10,000). https://openstax.org/books/principles-microeconomics-3e/pages/7-1-explicit-and-implicit-costs-and-accounting-and-economic-profit: 200,000 − 85,000 − 125,000 = −10,000"
    },
    {
      "given": {
        "rev": 480000,
        "exp": 310000,
        "imp": 90000
      },
      "expect": {
        "economic": 80000,
        "accounting": 170000,
        "cost": 400000
      },
      "source": "OpenStax, Principles of Microeconomics 3e, 7.1 Explicit and Implicit Costs, and Accounting and Economic Profit (accounting profit = total revenue − explicit costs; economic profit = total revenues − explicit costs − implicit costs; Eryn’s law practice: revenue $200,000, rent $50,000, clerk $35,000, forgone salary $125,000, economic profit −$10,000). https://openstax.org/books/principles-microeconomics-3e/pages/7-1-explicit-and-implicit-costs-and-accounting-and-economic-profit; hand calculation in content.mdx: 480,000 − 310,000 − 90,000 = 80,000"
    },
    {
      "given": {
        "rev": 150000,
        "exp": 100000,
        "imp": 50000
      },
      "expect": {
        "economic": 0,
        "accounting": 50000
      },
      "source": "OpenStax, Principles of Microeconomics 3e, 7.1 Explicit and Implicit Costs, and Accounting and Economic Profit (accounting profit = total revenue − explicit costs; economic profit = total revenues − explicit costs − implicit costs; Eryn’s law practice: revenue $200,000, rent $50,000, clerk $35,000, forgone salary $125,000, economic profit −$10,000). https://openstax.org/books/principles-microeconomics-3e/pages/7-1-explicit-and-implicit-costs-and-accounting-and-economic-profit; hand calculation in content.mdx: 150,000 − 100,000 − 50,000 = 0"
    },
    {
      "given": {
        "rev": 98765.43,
        "exp": 45678.9,
        "imp": 12345.67
      },
      "expect": {
        "economic": 40740.86,
        "accounting": 53086.53,
        "cost": 58024.57
      },
      "source": "OpenStax, Principles of Microeconomics 3e, 7.1 Explicit and Implicit Costs, and Accounting and Economic Profit (accounting profit = total revenue − explicit costs; economic profit = total revenues − explicit costs − implicit costs; Eryn’s law practice: revenue $200,000, rent $50,000, clerk $35,000, forgone salary $125,000, economic profit −$10,000). https://openstax.org/books/principles-microeconomics-3e/pages/7-1-explicit-and-implicit-costs-and-accounting-and-economic-profit; hand calculation in content.mdx: 98,765.43 − 45,678.90 − 12,345.67 = 40,740.86 (Python Fraction)"
    }
  ],
  "sources": [
    "OpenStax, Principles of Microeconomics 3e, 7.1 Explicit and Implicit Costs, and Accounting and Economic Profit: explicit costs are out-of-pocket costs; implicit costs are the opportunity cost of resources the firm already owns; accounting profit = total revenue − explicit costs; economic profit = total revenues − explicit costs − implicit costs; Eryn’s law practice (revenue $200,000, office rent $50,000, clerk $35,000, forgone salary $125,000; accounting profit $115,000, economic profit −$10,000). https://openstax.org/books/principles-microeconomics-3e/pages/7-1-explicit-and-implicit-costs-and-accounting-and-economic-profit (retrieved 2026-10-19)"
  ],
  "related": [
    "opportunity-cost",
    "profit",
    "marginal-cost",
    "break-even"
  ],
  "changelog": []
}