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What is the difference?

Revenue vs Net Income

Revenue

Net Income

What is it?

Revenue is defined as the income generated through a business’ primary operations. It is often referred to as “top line” and is shown at the top of an income statement.

Net Income is an accounting term that refers to the total revenue minus the total expenses for any given period. Net Income 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.

Formula

ƒ Sum(Revenue)
ƒ (Revenue - COGS - Operating Expenses - Taxes - Interest Expenses)

Published and updated dates

Date created: Feb 10, 2019

Latest update: Dec 4, 2020

Date created: Feb 10, 2019

Latest update: Dec 4, 2020