Gross Profit

What is gross profit?

Gross Profit Definition: Gross profit refers to the revenue a company or business makes from selling services or products, less the costs directly associated with selling and marketing these items.

These costs, referred to as the COGS or cost of goods sold, are deducted from the revenue and reported as gross profit or earnings on an income statement.

Gross profit is also known as gross income or sales profit. Gross profit is often used to assess a business’s ability to produce high profits against the cost of labor, marketing, and other expenses related to the sale of goods and services, such as raw materials and operating costs.

In general, reports that include gross profit do not include fixed costs and only variable expenses, which directly impact revenue.

Jul 30 - Comparewise Business Loan Banner

Other business terms:

Business Loan Help Center

How to Get a Grocery Store Business Loan
Best Type of Business Finance for Large Businesses
An End-of-Year Checklist for Your Small Business
How to Get Business Loans in Canada
Smarter Loans
Forward Funding
Kingsmen Capital Investments
Growth Street Capital
SharpShooter Funding
American Express Business Platinum Card
National Bank Allure Mastercard
National Bank MC1 Mastercard
Tangerine World Mastercard


Didn’t find the information you were looking for?

Send us your questions and we will get back to you.

Car loan?
Personal Loan?

Top deals await you just a short
application away!