What is 'Gross Profit'?

Gross profit is the profit a company makes after deducting the costs of making and selling its products, or the costs of providing its services.

Sharper Insight. Smarter Investing. Manage Preferences TERM OF THE DAY Gross Profit Gross profit is the profit a company makes after deducting the costs associated with making and selling its products, or the costs associated with providing its services. Breaking it Down: Gross profit assesses a company's efficiency at using its labor and supplies. The metric only considers variable costs, that is... Read More Related to "Gross Profit" Gross profit, operating profit and net income Find out how to calculate between gross profit, operating profit, and net income. Learn about the relationships between the type of profit, expenses, and where the bottom line is. Read More What are the differences between gross profit and gross margin? Learn how gross profit and gross margin are calculated and how each is used in fundamental analysis. Generally, these numbers are similar within an industry. Read More Does gross profit include labor and overhead? Gross profit is a company's profit after subtracting the costs of producing the goods and services. Several costs impact gross profit, both directly and indirectly. Read More Related Definitions Adjusted Gross Income - AGI Adjusted gross income (AGI) is a measure of income calculated from your gross income and used to determine how much of your income is taxable. Read More Marginal Profit Marginal profit is the profit earned by a firm or individual when one additional unit is produced and sold. Read More Variable Cost A variable cost is a corporate expense that changes in proportion with production output. Read More Profitability Ratios A class of financial metrics that are used to assess a business's ability to generate earnings as compared to its expenses and other relevant costs incurred during a specific period of time. Read More You are currently subscribed as: mondemand.forex@blogger.com Unsubscribe  |  Manage Subscriptions Investopedia, LLC, A Division of IAC. 114 West 41st St, floor 8, New York NY 10036 Copyright © 2018, Investopedia, LLC. All Rights Reserved Follow Us: