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# Operating Profit Calculation

Operating profit is the total revenue that a company earns from its core business activities, excluding the profit earned from any financing, investments or any tax-related issues. It helps the investors, potential buyers and owners to get more information about the core business activities. It is also called as earnings before interest and tax (EBIT). Given below operating profit calculator to find the total revenue of a company based on the gross profit and operating expenses.

Operating profit is the total revenue that a company earns from its core business activities, excluding the profit earned from any financing, investments or any tax-related issues. It helps the investors, potential buyers and owners to get more information about the core business activities. It is also called as earnings before interest and tax (EBIT). Given below operating profit calculator to find the total revenue of a company based on the gross profit and operating expenses.

#### Formula:

Operating Profit = Gross Profit - Operating Expenses

### Example:

A company has gross profit of Rs. 5000 and operating expenses of Rs. 1300.

#### Solution:

Operating Profit = Gross Profit - Operating Expenses
= 5000 - 1300
= Rs. 3700