Meaning: revenue vs. profit vs. income

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Revenue, income (net income), and profit are all financial terms that measure a company's earnings, but they represent different stages in the calculation.

The calculation is used to measure your company's financial health.

This is what the terms «revenue,» «profit,» and «income» mean:

Revenue is the total amount of money a chief of vp and training email lists company generates from selling goods or services. It's the income at the most basic level, like the total sales a store makes in a day.

Profit is a general term for a financial situation where a company's income is greater than its expenses.

Net income is a specific type of profit, but there can be other profits, too, like gross profit, which considers only a subset of expenses.

In simple terms, revenue is what you come at the door, income is what's left after paying the bills, and profit is a general term for when there's more money left than what was spent.

Income is the money a company has left after subtracting all its expenses from its revenue. It's commonly referred to as net income.

Think of income as revenue minus the cost of everything it took to generate that revenue (rent, salaries, materials, etc.). It's the company's current profit, often referred to as the "bottom line" on an income statement. Income can be broken up into two categories–gross and net.

Gross Income : Gross income is the total income recorded before any taxes and expenses are deducted. Gross income may also be referred to as gross profit or gross margin. It is found on the income statement.