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Home Definitions Investing Define Net Profit

Define Net Profit

Definitions - Investing

Net profit in the difference between gross profit and total expensesNet Profit is measured by the difference between Gross Profit and total expenses. Note that Total expenses include items such as operating expenses, Interest and Tax. In the US Net Profit is also known as Net Income. The formula is the following:

Net Profit = Gross Profit - (Operating expenses + Interest + Tax)

 

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