Net Income vs. Profit: An Overview

In everyday use, many terms in business and finance have different or even unclear definitions. In the context of finance or accounting, some concepts that the average person may use interchangeably have highly specific definitions. Consider the terms profit and net income. Though both expressions refer to a surplus of revenue over expenses, their definitions and applications differ significantly.

How To Calculate Net Profit

The calculations for each are as follows:

  • Gross profit: Revenue – COGS
  • Operating profit: Gross profit – operating expenses – depreciation – amortization
  • Net profit: Total revenue – total expenses

Are you looking to make your first (or next) real estate purchase? We employ innovative AI technology at BuyProperly to assist match investors with attractive investment options. We use a fractional ownership concept, which means you can get started for as low as $2500 (and expect yearly profits of 10-40%). BuyProperly’s methodology makes it simple to diversify your investment portfolio and grow wealth by allowing you to invest in multiple properties and locations. Do you want to know more? Pay us a visit at

Related Articles to Net Profit (net income)

  1. The Pros and Cons of Investing in Single-Family Homes
  2. How to Choose an Investment Property: A Step-by-Step Guide
  3. The 5 Types of Real Estate Investments
  4. Real Estate Sectors: Potential Winners and Losers in a Virus-Hit World
  5. 11 Real Estate Investing Mistakes to Avoid
  6. How to Create a Real Estate Investment Business Plan
  7. Why Invest in Real Estate: 7 Key Benefits to Know