University of Maryland Extension

Calculating the profit

Dale M. Johnson, Extension Specialist, Farm Management

Urban Ag home | Table of contents

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.

Previous page: Depreciation
Next page:
What is enterprise profit?

Maintained by the IET Department of the College of Agriculture and Natural Resources. © 2019. Web Accessibility