What is the difference between net profit, gross profit and profit?

It is normal for novice investors not to know these things, and it is more normal for college students not to know these things. Moreover, investment is different from entrepreneurship, and there is nothing to be ashamed of not knowing these. However, if you start your own business, or help others manage the business, it will be terrible. Let's explain them one by one.

Let's talk about net profit first. Net profit is actually "net income". Take commodity sales as an example, in addition to the cost of the commodity itself, operation and maintenance costs, loss costs. In short, all the expenses are included, and then the selling price is deducted from this expense, and the rest is the net profit, which determines how much money we can earn. Suppose the purchase price is 70 yuan, other expenses are 10 yuan, the selling price is 100 yuan, and the net profit is 20 yuan.

Let's talk about gross profit first. In fact, gross profit is the selling price minus the cost. Suppose the selling price is 65,438+000 yuan, and our purchase price is 70 yuan, then our gross profit is 30 yuan. And gross profit actually includes net profit+other expenses. Generally, gross profit is used to estimate the profit rate of goods. Take supermarkets as an example, supermarkets often use gross profit to price goods.

Finally, talk about profit. Profit is actually the floorboard of gross profit and net profit. For example, when we are talking about business, someone will tell you that my order is not profitable, and there is no profit at all. The so-called profit actually refers to making money or not making money. If you don't make money, there will be no profit. If you make money, you will make a profit. But the word profit describes and marks whether we make money, while net profit and gross profit divide how much money we make. Although these three words look the same, their meanings are much worse.

The investment has earned money, which proves that there is a profit. How much money has been earned as a whole can be estimated, that is, the gross profit; And how much money we finally made, this can estimate whether we will make money this time, that is, net profit. Whether it is gross profit or net profit, it is a kind of profit, with different opinions and usages.