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. ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌

| 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 gross profit, operating profit, and net income. Learn about the relationships between theses types of profits and expenses. Read More » How do gross profit and gross margin differ? Both gross profit and gross margin measure how profitable a company is during a given period, but each shows profitability in a different way. 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 Profitability ratios are a class of financial metrics that are used to assess a business's ability to generate earnings relative to its associated expenses Read More » CONNECT WITH INVESTOPEDIA Email sent to: mondemand.forex@blogger.com To update your newsletter preferences or unsubscribe, click here. 114 West 41st St, floor 8 New York NY 10036 © 2019, Investopedia, LLC, All Rights Reserved | Privacy Policy