All terms
Revenue & Financebeginner

Profit

Definition

What is left from your revenue after costs are paid. The money the business actually keeps.

Why it matters

Profit, not revenue, is what pays you and funds growth. A business can have high revenue and still lose money if its costs are higher.

Example

You make £5,000 in revenue and spend £3,500 on stock, ads and fees, so your profit is £1,500.

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