University of Maryland Extension

Calculating the profit

Author: 
Dale M. Johnson, Extension Specialist, Farm Management
Post date: 
Oct 1, 2019


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When you subtract out variable/operating, fixed/overhead, and depreciation expenses from the income, the result is profit. With the profit, you can pay yourself (If you haven’t already expensed a salary for yourself), grow the business, and pay down debt principal.

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Tags: 
From Surviving to Thriving: Strategies for Urban Farm Success
Economic assessment and risk management
profit
salary
income
depreciation expenses
variable/operating expenses
Fixed/Overhead expenses
debt
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