Legal Definitions - net profit

Definition: Net profit is the amount of money a business earns after deducting all expenses from its total revenue. It is also known as net income or bottom line.

Example: If a company's total revenue is $100,000 and its expenses are $80,000, then its net profit is $20,000.

This means that the company has earned $20,000 in profit after paying for all its expenses such as salaries, rent, utilities, and taxes. Net profit is an important measure of a company's financial health as it shows how much money it is actually making.