Rearranging profit and loss formulas

Profit is what is left from total revenue after total costs are paid: profit = total revenue − total costs. To find a missing figure, rearrange the formula first, then substitute the numbers.

Finding total costs or revenue

From profit = revenue − total costs, you can rearrange to get total costs = revenue − profit and revenue = profit + total costs. For example, a stall takes £840 revenue and makes £150 profit, so total costs = £840 − £150 = £690.

When the business makes a loss

A loss happens when total costs are greater than revenue. The profit is negative, so profit = −loss. If a loss is given as a positive amount, use these rearrangements: total costs = revenue + loss and revenue = total costs − loss. For example, revenue is £900 and the loss is £130, so total costs = £900 + £130 = £1,030.

Keeping the negative sign

A negative profit result means a loss, not negative revenue. If profit is written as a negative number, keep the sign when rearranging. For example, revenue is £640 and profit is −£75. Total costs = £640 − (−£75) = £640 + £75 = £715, because subtracting a negative adds it on.