Net Profit (Helpful Definition!) | Finance Strategists | Your Online Finance Dictionary

Profit is the money earned by a business when its total revenue exceeds its total expenses. Any profit a company generates goes to its owners, who may choose to distribute the money to shareholders as income, or allocate it back into the business to finance further company growth. The method of calculating profit is simple: subtract a business’s expenses from its total revenue over a fixed amount of time.
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0:00 Net Profit Definition
0:21 Method of Calculating the Profit
0:29 Primary Levels of Profit
1:16 Net Profit Question
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