Do you know the difference between
revenue, profit and
income?
💡 These three terms are related to money but have different meanings in business and finance.
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Revenue – total money earned before any expenses are deducted.
Example: A company makes $1 million in sales—that’s its revenue.
▪️
Profit – money left after subtracting all expenses from revenue.
Formula:
Profit = Revenue - ExpensesExample: If the company has $800,000 in expenses, the remaining $200,000 is profit.
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Income – this can mean different things depending on context:
For businesses, "income" often means net income, which is the same as profit.
For individuals, "income" refers to money earned from jobs, investments, or other sources.
@ieltsboyko