Net Profit

What is Net Profit?

Net profit (also called the bottom line) is the actual amount of money your business earns after deducting every expense from your revenue. This includes COGS, operating expenses, marketing costs, taxes, interest, and any other costs.

Net Profit vs. Revenue

Revenue tells you how much money came in. Net profit tells you how much you actually kept. The difference between the two is crucial — a business can have growing revenue but shrinking profits if costs grow faster.

How to Increase Net Profit

• Increase gross margin through better pricing or lower COGS
• Reduce operating expenses
• Optimize marketing spend for better ROAS
• Minimize returns and refunds