Definition The profit left after every cost has been deducted, including interest and tax. Often called the bottom line.
Example Revenue of €5m minus €4.6m of total costs gives a net profit of €400k.
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Choose your role to see what this term means in your work.
Why it matters It is the final measure of whether a business made money.
Where it is used Annual reports, profit and loss statements and board reports.
How to calculate it Revenue − total costs, including interest and tax
Worked example Revenue of €5m minus €4.6m of total costs gives a net profit of €400k.
