What is Net profit?

Net profit (Definition)

Net profit is the amount of profit that is left over after all expenses and costs have been deducted from the total income. It is a measure of a company's profitability over a given period and it can be broken down into multiple stages. To determine a company’s net profit, you must first know what the gross profit is. A business's gross profit is the amount it makes after taking out all the costs it pays to make and sell its products or services. The net profit is the amount of money your business makes after all operating, interest, and tax costs are taken out as well. Net profit can even be listed on a financial statement as "net profit after taxes" to show the difference between items that include and don't include taxes.