What "profit" means in finance

Profit is the amount of money a business earns after deducting all expenses from its revenue. It is the surplus money earned by a company, organization, or an individual as a result of their business or investment activity. Profit is calculated by subtracting the total cost of producing goods or services from the revenue generated by selling them. Profit is one of the main objectives of any business, and it is important for assessing the performance of a business and for making investment decisions.


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