is the opportunity cost of using entrepreneurial abilities in the production of a good, or the profit that could have been received by entrepreneurship in another business venture. Like the opportunity costs of other resources, normal profit is deducted from revenue to determine economic profit. It is, however, never included as an accounting cost when accounting profit is computed.

The minimum payment an entrepreneur expects to receive to induce the entrepreneur to perform entrepreneurial functions.

Normal profit is the expected return for supplying the resource known as entrepreneurship. Normal profit is included in the total costs of the firm and is a source of income for the household. The total normal profit earned in a nation over the course of a year is included in that nation's gross domestic product (GDP).