{"id":1097,"date":"2019-07-01T15:08:10","date_gmt":"2019-07-01T15:08:10","guid":{"rendered":"https:\/\/sage-new-clone.local\/en-au\/blog\/?post_type=sage_glossary&#038;p=1097"},"modified":"2025-10-17T19:14:22","modified_gmt":"2025-10-17T11:14:22","slug":"what-is-net-profit","status":"publish","type":"sage_glossary","link":"https:\/\/www.sage.com\/en-sg\/blog\/glossary\/what-is-net-profit\/","title":{"rendered":"What is net profit?"},"content":{"rendered":"<header class=\"entry-header has-dark-background-color entry-header--has-illustration entry-header--has-illustration--generic\">\n\t<div class=\"container\">\n\t\t<div class=\"entry-header__row row align-center\">\n\t\t\t<div class=\"col col-lg-7 col-xlg-6 entry-header__content\">\n\t\t\t\t\t\t\t<div class=\"component component-single-header\">\n\t\t\t\t\t\t\t\t\t\t<div class=\"entry-header__misc text--subtitle text--uppercase text--small\">\n\t\t\t\t\t\t\t<a href=\"https:\/\/www.sage.com\/en-sg\/blog\/glossary\/\" class=\"entry-header__link\">Glossary definition<\/a>\t\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t<div class=\"entry-title-wrapper\">\n\t\t\t\t\t<h1 class=\"entry-title\">\n\t\t\t\t\t\tWhat is net profit?\t\t\t\t\t<\/h1>\n\t\t\t\t<\/div>\n\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\n\t\t\t<\/div>\n\n\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t<\/div>\n\t<div class=\"single-post-details container\">\n\t\t<div class=\"col\">\n\t\t\t<span class=\"reading-time\"> min read<\/span>\n\t\t<button\n\t\t\ttype=\"button\"\n\t\t\tclass=\"social-share-button button button--icon button--secondary js-social-share-button\"\n\t\t\tdata-share-title=\"What is net profit?\"\n\t\t\tdata-share-url=\"https:\/\/www.sage.com\/en-sg\/blog\/glossary\/what-is-net-profit\/\"\n\t\t\tdata-share-text=\"Please read this interesting article\"\n\t\t>\n\t\t\t<span class=\"social-share-button__share-label\">Share<\/span>\n\t\t\t<span class=\"social-share-button__copy-label\" hidden>Copy Link<\/span>\n\t\t\t<span class=\"social-share-button__copy-tooltip\" aria-hidden=\"true\" hidden>Copied<\/span>\n\t\t<\/button>\n\n\t\t\t\t<\/div>\n\t<\/div>\n<\/header>\n\n\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-what-is-net-profit\">What is net profit?<\/h2>\n\n\n\n<p>Synonymous with net income, net profit is a company\u2019s total earnings after subtracting all expenses. Expenses subtracted include the costs of normal business operation as well as depreciation and taxes. Net profit is commonly referred to as a company\u2019s \u201cbottom line\u201d and is a true indicator of a company\u2019s profitability.<\/p>\n\n\n\n<p>While the basic net profit definition does not vary in content from that of net income, there is some variance in usage between organizations. Since the general term \u201cprofit\u201d is calculated at different stages in a company\u2019s financial reporting with varying qualifiers, \u201cnet profit\u201d may appear on a financial statement in the context of \u201cnet profit after taxes\u201d to differentiate between items accounting for and excluding taxes while keeping terms consistent.<\/p>\n\n\n\n<p>To determine, follow this net profit calculation:<\/p>\n\n\n\n<p>Net Profit = Total Revenue \u2013 (Total Expenses + Taxes + Depreciation)<\/p>\n\n\n<div class=\"single-cta\">\n\t<div class=\"single-cta__positioner\">\n\t\t<div class=\"single-cta__wrapper has-dark-background-color\">\n\t\t\t<div class=\"single-cta__content\">\n\t\t\t\t\t\t\t\t<h2 class=\"single-cta__title h3\">Subscribe to the Sage Advice Newsletter<\/h2>\n\n\t\t\t\t\t\t\t\t\t<div class=\"single-cta__description\">\n\t\t\t\t\t\t<p>Get a roundup of our best business advice in your inbox every month<\/p>\n\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<a\n\t\t\t\t\t\thref=\"#gate-476ad9d0-ec82-4a0c-bb25-98dd6821b545\"\n\t\t\t\t\t\tclass=\"single-cta__button button button--primary\"\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t>Subscribe<\/a>\n\t\t\t\t\t\t\t<\/div>\n\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\t<img decoding=\"async\" width=\"1064\" height=\"810\" src=\"https:\/\/www.sage.com\/en-sg\/blog\/wp-content\/uploads\/sites\/24\/2019\/06\/GettyImages-626184462-1064x810.jpg\" class=\"single-cta__image\" alt=\"\" loading=\"lazy\" srcset=\"https:\/\/www.sage.com\/en-sg\/blog\/wp-content\/uploads\/sites\/24\/2019\/06\/GettyImages-626184462-1064x810.jpg 1064w\" sizes=\"auto, (min-width: 48em) 33vw, 100vw\" \/>\t\t\t<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>What is net profit? Synonymous with net income, net profit is a company\u2019s total earnings after subtracting all expenses. Expenses subtracted include the costs of normal business operation as well as depreciation and taxes. Net profit is commonly referred to as a company\u2019s \u201cbottom line\u201d and is a true indicator of a company\u2019s profitability. While [&hellip;]<\/p>\n","protected":false},"author":708,"featured_media":0,"template":"","meta":{"_sage_video":false,"footnotes":""},"tags":[23,173,47,61,202,192],"class_list":["post-1097","sage_glossary","type-sage_glossary","status-publish","hentry","tag-accounting-101","tag-cash-flow","tag-expenses","tag-profit-and-loss","tag-small-business","tag-start-up-business"],"distributor_meta":false,"distributor_terms":false,"distributor_media":false,"distributor_original_site_name":"Sage Advice Singapore","distributor_original_site_url":"https:\/\/www.sage.com\/en-sg\/blog","push-errors":false,"_links":{"self":[{"href":"https:\/\/www.sage.com\/en-sg\/blog\/api\/wp\/v2\/sage_glossary\/1097","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.sage.com\/en-sg\/blog\/api\/wp\/v2\/sage_glossary"}],"about":[{"href":"https:\/\/www.sage.com\/en-sg\/blog\/api\/wp\/v2\/types\/sage_glossary"}],"author":[{"embeddable":true,"href":"https:\/\/www.sage.com\/en-sg\/blog\/api\/wp\/v2\/users\/708"}],"version-history":[{"count":0,"href":"https:\/\/www.sage.com\/en-sg\/blog\/api\/wp\/v2\/sage_glossary\/1097\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.sage.com\/en-sg\/blog\/api\/wp\/v2\/media?parent=1097"}],"wp:term":[{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.sage.com\/en-sg\/blog\/api\/wp\/v2\/tags?post=1097"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}