Net Profit

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What is Net Profit?

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.

Alternate names: Net Income, Net Earnings

How to calculate Net Profit

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

Metrics related to Net Profit

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