We first subtract the cost of goods sold (COGS) from total revenue to calculate the gross profit. COGS totals $126,584 million. Selling, administrative, and other fixed expenses aren't included.

The result of revenue minus expenses is profit. Profits are earned when goods or services are sold for more than they cost to produce. The single contract in our revenue example was valued at $50,000.

Return on investment (ROI) measures how well an investment is performing. Learn how to calculate and interpret the ROI of your current portfolio or a potential investment.

Earnings before interest and taxes (EBIT) is a useful financial metric. Here's what investors need to know about it.

RE/MAX of Southern Africa helps homeowners accurately determine their true profit from selling a property by considering all relevant expenses, including legal fees, agent commissions, compliance ...

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However, there are several hidden costs to consider when calculating the true profit. “Your profit calculation starts with the selling price of your home minus what you originally paid for it.