What is the difference?

Gross Profit vs Net Profit

Gross Profit

Net Profits

What is it?

Gross Profit is the amount left over from total revenues after Cost of Goods Sold (COGS) has been deducted. COGS will typically include the cost of making and selling the product or the cost of services provided by the company.

Net Profit is the value that remains after all operating expenses are subtracted from a company’s revenue. Net Profit is one of the best ways to determine a business' profitability and is often referred to as the bottom line. For Net Income, expenses to be deducted include Cost of Goods Sold (COGS), all operating expenses, and tax and interest costs.